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Robinhood Markets Inc (HOOD)
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Upturn Advisory Summary
12/11/2024: HOOD (3-star) is a STRONG-BUY. BUY since 60 days. Profits (64.88%). Updated daily EoD!
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: Strong Buy |
Historic Profit: 44.78% | Upturn Advisory Performance 2 | Avg. Invested days: 32 |
Profits based on simulation | Stock Returns Performance 3 | Last Close 12/11/2024 |
Type: Stock | Today’s Advisory: Strong Buy |
Historic Profit: 44.78% | Avg. Invested days: 32 |
Upturn Star Rating | Stock Returns Performance 3 |
Profits based on simulation Last Close 12/11/2024 | Upturn Advisory Performance 2 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 33.45B USD |
Price to earnings Ratio 65.24 | 1Y Target Price 43.88 |
Dividends yield (FY) - | Basic EPS (TTM) 0.58 |
Volume (30-day avg) 26720798 | Beta 1.84 |
52 Weeks Range 10.38 - 42.76 | Updated Date 12/12/2024 |
Company Size Large-Cap Stock | Market Capitalization 33.45B USD | Price to earnings Ratio 65.24 | 1Y Target Price 43.88 |
Dividends yield (FY) - | Basic EPS (TTM) 0.58 | Volume (30-day avg) 26720798 | Beta 1.84 |
52 Weeks Range 10.38 - 42.76 | Updated Date 12/12/2024 |
Earnings Date
Report Date - | When - |
Estimate - | Actual - |
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 21.8% | Operating Margin (TTM) 25.75% |
Management Effectiveness
Return on Assets (TTM) 1.51% | Return on Equity (TTM) 7.62% |
Revenue by Products
Revenue by Products - Current and Previous Year
Valuation
Trailing PE 65.24 | Forward PE - |
Enterprise Value 29712640071 | Price to Sales(TTM) 13.89 |
Enterprise Value to Revenue 12.34 | Enterprise Value to EBITDA 49.44 |
Shares Outstanding 763563008 | Shares Floating 757531806 |
Percent Insiders 0.75 | Percent Institutions 78.81 |
Trailing PE 65.24 | Forward PE - | Enterprise Value 29712640071 | Price to Sales(TTM) 13.89 |
Enterprise Value to Revenue 12.34 | Enterprise Value to EBITDA 49.44 | Shares Outstanding 763563008 | Shares Floating 757531806 |
Percent Insiders 0.75 | Percent Institutions 78.81 |
Analyst Ratings
Rating 3.94 | Target Price 12.19 | Buy 5 |
Strong Buy 6 | Hold 5 | Sell 1 |
Strong Sell - |
Rating 3.94 | Target Price 12.19 | Buy 5 | Strong Buy 6 |
Hold 5 | Sell 1 | Strong Sell - |
AI Summarization
Robinhood Markets Inc. (HOOD): A Comprehensive Overview
Company Profile:
History and Background: Founded in 2013 by Vladimir Tenev and Baiju Bhatt, Robinhood disrupted the online brokerage industry by offering commission-free trading for stocks, ETFs, and options. It quickly gained immense popularity, particularly among young investors, reaching 22.5 million funded accounts by Q2 2021.
Core Business: Robinhood provides a user-friendly platform for investing and trading in various financial instruments. Its core business includes:
- Commission-free: Trading stocks, ETFs, and options without charging commissions.
- Fractional shares: Enabling investors to buy fractions of shares, making investing more accessible.
- Options trading: Offering options trading for experienced investors.
- Cryptocurrency trading: Providing access to trading various cryptocurrencies.
- Cash management: Offering a high-yield checking and savings account option.
Leadership & Corporate Structure: Robinhood is currently led by Vlad Tenev (CEO) and Jason Warnick (Executive Chairman and CFO). It operates a dual-class share structure, where Class B shares have 10 votes per share compared to Class A shares with 1 vote.
Top Products and Market Share:
- Robinhood App: The company's primary product, a mobile app, accounts for the most significant portion of user activity and revenue.
- Web Platform: Robinhood also offers a web-based platform for trading and investing.
Market Share: Robinhood holds a significant 4.9% market share in the US brokerage industry, with over 28 million funded accounts as of Q1 2023. However, its share has declined from its peak as competitors have adopted commission-free trading.
Comparison with Competitors:
Competitor | Market Share | Advantages | Disadvantages |
---|---|---|---|
Fidelity | 18.5% | Strong brand, extensive research tools, diverse investment options | No cryptocurrency trading |
Charles Schwab | 12.8% | Established brand, strong customer service, competitive trading platform | Higher fees for less active traders |
Vanguard | 7.5% | Low-cost index funds, strong investment research | Limited trading options |
Total Addressable Market: The global online brokerage market was valued at $14.6 billion in 2022 and is expected to reach $29.2 billion by 2028. The US market accounts for a significant portion of this growth, with estimates indicating a market size of $ 8.59 billion in 2023.
Financial Performance:
- Revenue: Robinhood generated $155 million in revenue for Q1 2023, primarily from transaction-based fees like options trading and margin lending.
- Net Income: The company reported a net loss of $ 160 million in Q1 2023, reflecting increased expenses and declining trading activity.
- Profit Margin: Robinhood's net profit margin is currently negative, indicating challenges in achieving profitability.
- Earnings per Share (EPS): EPS for Q1 2023 was $(0.91), reflecting the net loss.
Financial Performance Comparison: Compared to Q1 2022, Robinhood's revenue declined by 0.57%, while its net loss increased by 108.7%. This reflects the impact of the changing market conditions and increased competition.
Cash Flow & Balance Sheet: Robinhood possesses a strong cash position of $6.3 billion as of Q1 2023, providing financial flexibility for future growth initiatives. However, its liabilities have increased, highlighting the need for efficient cash management.
Dividends and Shareholder Returns:
- Dividend History: Robinhood does not currently pay dividends, focusing on reinvesting profits for future growth.
- Shareholder Returns: Robinhood's stock (HOOD) has experienced significant volatility since its IPO in July 2021. As of November 28, 2023, HOOD is trading at $12.54, representing a decline of approximately 70% from its IPO price.
Growth Trajectory:
- Historical Growth: Robinhood experienced rapid user growth in its early years, reaching 22.5 million funded accounts by Q2 2021. However, its growth has slowed down recently due to increased competition and market volatility.
- **Future Growth: **The company's future growth potential is closely tied to expanding its product offerings, improving profitability, and navigating the evolving regulatory landscape.
Market Dynamics:
- Industry Trends:
- Increasing adoption of online trading platforms: The online brokerage industry is experiencing continuous growth as more investors embrace digital tools for managing their finances.
- Growing demand for fractional shares and cryptocurrency trading: Robinhood's core offerings align with these emerging trends, providing a competitive edge.
- Demand-Supply Scenario: The demand for commission-free trading and accessible investment options remains high, making the market attractive for Robinhood and its competitors.
- Technological Advancements: Innovation in financial technology is constantly evolving, requiring Robinhood to adapt and integrate new technologies to maintain its competitive edge.
Competitors:
- Key Competitors: Fidelity (FNF), Charles Schwab (SCHW), Vanguard (VGT), Interactive Brokers (IBKR)
- Competitive Advantages:
- User-friendly mobile app: Robinhood prioritizes a sleek and intuitive user experience, attracting first-time investors.
- Fractional shares and cryptocurrency trading: These offerings cater to specific investor segments and differentiate Robinhood
- Competitive Disadvantages:
- Lack of advanced trading tools: Compared to competitors like Fidelity and Interactive Brokers,
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Robinhood Markets Inc
Exchange | NASDAQ | Headquaters | Menlo Park, CA, United States |
IPO Launch date | 2021-07-29 | Co-Founder, President, CEO & Chairman of the Board | Mr. Vladimir Tenev |
Sector | Financial Services | Website | https://robinhood.com |
Industry | Capital Markets | Full time employees | 2200 |
Headquaters | Menlo Park, CA, United States | ||
Co-Founder, President, CEO & Chairman of the Board | Mr. Vladimir Tenev | ||
Website | https://robinhood.com | ||
Website | https://robinhood.com | ||
Full time employees | 2200 |
Robinhood Markets, Inc. operates financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds (ETFs), American depository receipts, options, gold, and cryptocurrencies. The company offers fractional trading, recurring investments, fully-paid securities lending, access to investing on margin, cash sweep, instant withdrawals, retirement program, around-the-clock trading, and initial public offerings participation services. It also provides various learning and education solutions comprise Snacks, an accessible digest of business news stories for a new generation of investors.; Learn, which is an online collection of beginners' guides, feature tutorials, and financial dictionary; Newsfeeds that offer access to free, premium news from sites from various sites, such as Barron's, Reuters, and Dow Jones. In addition, the company offers In-App Education, a resource that covers investing fundamentals, including why people invest, a stock market overview, and tips on how to define investing goals, as well as allows customers to understand the basics of investing before their first trade; and Crypto Learn and Earn, an educational module available to various crypto customers through Robinhood Learn to teach customers the basics related to cryptocurrency. Further, it provides Robinhood credit cards, cash card and spending accounts, and wallets. Robinhood Markets, Inc. was incorporated in 2013 and is headquartered in Menlo Park, California.
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