Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 5 Sep, 25 | HOOD | Buy | USD 102.91 | USD 108.0 | USD 115.0 | 3 days | Closed |
12.38%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
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.
Platform Assets Expansion: Total platform assets nearly doubled, increasing 99% YoY to USD 279 billion, driven by deposits, acquisitions, and market appreciation
Net Income Growth: Net income increased 105% YoY, from USD 188 million in Q2 FY24 to USD 386 million in Q2 FY25
Cash Position Decline: Cash and cash equivalents fell 7% YoY, from USD 4.5 billion in Q2 FY24 to USD 4.2 billion in Q2 FY25, despite higher profitability
Operating Expenses: Total operating expenses rose 12% YoY, from ~USD 491 million to USD 550 million, partly reflecting higher costs from acquisitions
Robinhood faces heightened investment risk from increased reliance on volatile cryptocurrency revenues, rising regulatory scrutiny in global markets, and integration risks tied to recent acquisitions such as Bitstamp and WonderFi
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 102.91 | 94.0 | 108.0 | 115.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strong Quarterly Performance: Robinhood Markets, Inc. reported a solid second-quarter performance for fiscal 2025, ending June 30, 2025, marked by strong revenue growth and enhanced profitability. Total net revenues rose 45% year-over-year to USD 989 million, while net income doubled to USD 386 million, translating into diluted earnings per share (EPS) of USD 0.42, a 100% increase compared to Q2 FY2024. Adjusted EBITDA also rose significantly, up 82% to USD 549 million, reflecting higher trading activity and expanding platform usage.
Revenue Growth Across Segments: Transaction-based revenues grew 65% year-over-year to USD 539 million, primarily supported by options revenue of USD 265 million (+46%), cryptocurrencies revenue of USD 160 million (+98%), and equities revenue of USD 66 million (+65%). Net interest revenues rose 25% to USD 357 million, benefiting from growth in interest-earning assets and securities lending. Other revenues also climbed 33% to USD 93 million, driven mainly by an expanding Robinhood Gold subscriber base.
Customer and Asset Expansion: The company achieved notable customer and asset growth during the quarter. Funded customers rose by 10% year-over-year to 26.5 million, while investment accounts increased to 27.4 million, also up 10%. Total platform assets nearly doubled (+99%) to USD 279 billion, driven by net deposits, acquired assets, and favorable equity and crypto valuations. Net deposits reached USD 13.8 billion in Q2, reflecting an annualized growth rate of 25% relative to Q1 platform assets. Over the past 12 months, net deposits totaled USD 57.9 billion, a 41% growth rate compared to the previous year.
Product Innovation and Customer Engagement: Robinhood maintained strong momentum in product innovation, particularly for active traders. The company expanded availability of Robinhood Legend in the UK and introduced advanced tools such as mobile Legend charts and pre-trade options simulated returns. It also hosted its first-ever product spotlight livestream and is preparing for the second HOOD Summit in September 2025, aimed at further engaging its active trading community.
Expansion into Wealth and Advisory Services: Beyond trading, Robinhood continued to diversify into broader financial services. Robinhood Strategies, launched in March 2025, now manages over USD 0.5 billion in assets and serves more than 100,000 customers. Retirement assets under custody (AUC) surpassed USD 20 billion, up 50% year-to-date, while Robinhood Gold subscriptions climbed to a record 3.5 million users, representing 13% adoption. The recently launched Gold Card is already in circulation with more than 300,000 customers, highlighting growing adoption across financial products.
Global Crypto Expansion and Strategic Acquisitions: Robinhood significantly advanced its crypto strategy during the quarter. It expanded crypto operations into 30 European countries, launched stock tokens in Europe covering over 200 U.S. securities, and introduced crypto staking for U.S. customers. The acquisition of Bitstamp Ltd. added USD 7 billion in exchange trading volumes in June 2025 and broadened Robinhood’s global regulatory footprint. Additionally, Robinhood entered into an agreement to acquire WonderFi, a Canadian leader in digital asset products, further strengthening its global presence.
Operational Efficiency and Capital Allocation: Operating expenses rose modestly, with total operating costs up 12% year-over-year to USD 550 million, reflecting disciplined expense management despite integration of acquisitions. Adjusted operating expenses and share-based compensation rose 6% to USD 522 million. Robinhood maintained a strong balance sheet with USD 4.2 billion in cash and cash equivalents, and continued its capital return program with USD 124 million in share repurchases during the quarter. Over the last twelve months, buybacks totaled USD 703 million at an average price of USD 34.24 per share.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Robinhood Markets, Inc. (NASDAQ: HOOD) at the closing market price of USD 102.91, as on Sep 04, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Financial Services Industry: Capital Markets
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| HOOD Robinhood Markets Inc |
-1.51 1.26% | 117.89 | 148.93 | - | 8.46 | 2.36 | 5.83 | -23.6524 |
| MS Morgan Stanley |
-1.47 0.83% | 175.04 | 16.50 | 13.76 | 2.80 | 1.65 | ||
| CGXYY China Galaxy Securities Co Ltd ADR |
- -% | 33.00 | 144.44 | 86.21 | 4.25 | 7.96 | ||
| SCHW Charles Schwab Corp |
0.41 0.43% | 96.41 | 22.86 | 17.39 | 6.14 | 4.28 | ||
| GS Goldman Sachs Group Inc |
-7.575 0.86% | 871.58 | 18.44 | 10.60 | 2.83 | 1.16 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 04,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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