Robinhood Markets (HOOD) stock bounced off support at the 110 level on Friday as it aims to evolve from a trading app into a broader personal finance platform. By using a combination of option strategies, we could potentially buy the stock for a significant discount, or achieve a healthy profit if the stock trades sideways. More News from Barchart Here’s the trade: Sell to open the HOOD February 20 put with a strike price of $105, which was trading around $5.55 on Friday. Then, add a bear call sprea ...

Key Points Robinhood’s stock has soared over the past year. The warming market is driving more investors back to its platform. It still appears reasonably valued in relation to its growth potential. 10 stocks we like better than Robinhood Markets › Robinhood's (NASDAQ: HOOD) stock nearly tripled over the past 12 months. The online brokerage dazzled investors with its robust revenue growth, rising margins, and soaring profits. Does Robinhood's stock still have more room to run before its next earn ...

Back in the end of September this year, HOOD stock traded at a forward earnings multiple of over 69 times. At that point, shares were exchanging hands at over $143. This is another reason why some traders might consider Robinhood to be contextually undervalued. Nevertheless, advanced traders will want to interrogate such claims carefully before making a decision.My proposal is that, with a little framework adjustment, we can narrow the dispersion down to a tighter range.Of course, the expected move represen ...

Vlad Tenev, CEO and co-founder of Robinhood, has spent the year turning the  trading app into a serious player in the crypto industry. This feature is a part of CoinDesk's Most Influential 2025 list. Once known for commission-free stock trades, the company is now building its own blockchain, offering staking services, and expanding across Europe with tokenized stocks. The biggest move saw Robinhood complete its $200 million acquisition of Bitstamp, one of the longest-running crypto exchanges. The deal b ...

Core Insights - Robinhood has experienced significant stock price appreciation, with shares up nearly 90% over the past six months and 270% in 2025, resulting in a staggering 1,400% gain over three years [1][2] Financial Performance - In Q3, Robinhood's revenue doubled to $1.3 billion, and net income increased by 271% year-over-year [2] - Transaction-based revenue surged 129% to $730 million, making up 57% of total revenue, with cryptocurrency revenue increasing by 330% to $268 million, options revenue rising by 50% to $304 million, and equities revenue growing by 132% to $86 million [5] Business Model and Diversification - Robinhood has transitioned from a trading app to a diversified financial services platform, now offering 11 business lines each generating over $100 million in annualized revenue [4] - The company aims to generate half of its revenue from outside the U.S. and institutional investors within the next decade, supported by the acquisition of Bitstamp, a global cryptocurrency exchange [16] Market Sensitivity - Robinhood's performance is closely tied to retail trading activity and market sentiment, with trading volumes increasing during market upswings and declining during downturns [6][10] - The correlation between Robinhood's stock and Bitcoin suggests that crypto volatility will significantly impact its stock performance in 2026 [8][10] Event Contracts as Growth Engine - Robinhood has introduced event contracts, allowing users to bet on specific outcomes, with contract volume doubling each quarter and reaching 2.3 billion in Q3, potentially leading to a $300 million annual run rate [11][12] - Regulatory scrutiny exists, as Connecticut's Department of Consumer Protection issued cease-and-desist orders regarding illegal sports wagering, which could affect future growth [13] Valuation and Future Outlook - Robinhood's forward price-to-earnings (P/E) ratio stands at 59, significantly higher than the S&P 500's 24.1, indicating a premium valuation for a high-growth company [15] - The company is positioned for continued growth, with a focus on expanding its core business and diversifying its revenue streams [16]

Group 1 - Financial service companies Robinhood and Coinbase are shifting towards tokenizing the stock market, aiming to convert real-world assets into digital tokens on a blockchain [1][2] - Robinhood has already implemented tokenized stocks in the EU, allowing trading of tokens representing shares of over 200 U.S. companies, with trading available 24/5 and a 0.1% foreign exchange fee [5][8] - The tokenization plan includes expanding trading hours to 24/7 and launching a custom blockchain called the Robinhood Chain for off-platform asset trading [6][4] Group 2 - Coinbase has established significant partnerships with major firms like Circle and Blackrock, enhancing its reputation in the crypto space, while Robinhood lacks similar institutional partnerships [7] - Both companies are competing for market share among individual and institutional investors, with the expectation that the benefits of tokenized stocks will attract customers [2][8] - Robinhood's early lead in tokenized U.S. stocks positions it favorably as traditional equities transition to blockchain technology [8]

Group 1 - The earnings season can be volatile, but long-term investors should look beyond single earnings reports and avoid impulsive buy-or-sell decisions [1] - Robinhood Markets and Uber Technologies experienced stock declines after their quarterly updates, yet both companies have outperformed broader equities this year and maintain strong prospects [2] Group 2 - Robinhood has evolved into a comprehensive financial services company, expanding from its initial trading app to include banking, advanced trading, and retirement savings accounts [4] - In Q3, Robinhood's revenue doubled to $1.27 billion, and earnings per share increased by 259% year over year to $0.61, but the stock fell due to high valuation concerns, trading at over 50 times forward earnings [5] - Robinhood is considered a buy for long-term investors due to its potential as a leading trading and financial services platform, appealing particularly to younger investors [6][7]

Core Insights - Robinhood Markets is being valued as a potential generational company, with a current market cap of $132 billion, indicating strong investor confidence in its future growth [1] - The company is positioned to benefit from a significant wealth transfer estimated at $84 trillion over the coming decades, appealing to a younger demographic that resonates with its brand [2] - Robinhood has successfully attracted over 26 million funded customers, with a median customer age of 35, and has seen its total platform assets grow to $304 billion, a 112% year-over-year increase [4] Innovation and Growth Potential - The company is innovating with new products and services, including the development of its own blockchain, which could enhance asset transfer speed and efficiency [6] - CEO Vlad Tenev anticipates that the tokenization of real-world assets will disrupt the financial system, allowing customers to invest in valuable private assets like SpaceX and OpenAI [7] - Robinhood is targeting a long-term addressable market exceeding $600 billion, which could justify its current valuation despite trailing 12-month revenues of $3.6 billion [8]

Core Thesis - eToro Group Ltd. is viewed positively due to its strong financial performance and growth potential, despite its stock trading below past highs [1][2][5] Financial Performance - eToro's revenue has surged by 225% annually, while gross profit increased by 41%, indicating strong top-line growth and operational efficiency [2] - Total assets rose by 48%, with liabilities increasing by 235%, primarily due to accounts payable linked to aggressive marketing campaigns [3] - Cash from operating activities increased by 140%, while cash used in investing declined, suggesting disciplined capital allocation and targeted asset acquisitions [3] Valuation Metrics - The price-to-earnings ratio for eToro is 18.32 trailing and 15.29 forward, which is considered attractive compared to peers like Robinhood [1][4] - Market sentiment does not currently reflect the strong fundamentals of eToro, indicating a potential disconnect between the stock price and its intrinsic value [4] Investment Opportunity - The divergence between market perception and eToro's financial strength presents an intriguing investment opportunity, particularly as retail trading adoption grows globally [5] - eToro is well-positioned for continued expansion, making it a compelling consideration for both equity and long-term strategic investors [5]

Core Insights - SoFi Technologies and Robinhood Markets have transformed from unprofitable companies to successful entities with soaring share prices, indicating strong recovery and growth potential [1][2] Company Overview - SoFi Technologies started by helping college graduates refinance student loans and has expanded its offerings to include various lending products, banking services, and stock trading [3][4] - Robinhood pioneered the commission-free trading model and has become a popular platform for stock and crypto trading, generating revenue through multiple channels including interest on cash balances and subscription services [6][7] Recent Financial Performance - SoFi's revenue increased by 44% year over year to $858 million in Q2, with net income rising 459% to $97.3 million and customer base growing by 34% to 11.7 million [5] - Robinhood's Q2 revenue rose 45% to $989 million, net income more than doubled to $386 million, and total platform assets surged 99% to $279 billion, with Gold subscription members increasing by 76% to 3.5 million [8] Market Position and Future Prospects - Both companies are experiencing rapid growth and are well-positioned for the future of banking, appealing particularly to younger generations [12][13] - Despite high forward price-to-earnings ratios compared to the industry average, their growth potential justifies a premium valuation [10][12] - There is significant room for revenue growth through cross-selling additional services and expanding internationally [14]