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Robinhood
HOOD-Q
PARTIAL BUY
Jun 07, 2024
$22.200
Stock price when the opinion was issued
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Robinhood Markets, Inc. is an American financial services company headquartered in Menlo Park, California, that facilitates commission-free trades of stocks, exchange-traded funds and cryptocurrencies via a mobile app introduced in March 2015. Social media mentions are up 13% in the past 24h.
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HOOD was largely written off following its IPO and subsequent flame-out, but has started to put things together nicely now. It has been losing money but will be profitable this year (53c per share), with 56c expected next year. It is cash flow positive and the stock momentum is very positive. The last quarter was excellent and blew away estimates. It is 43X earnings--expensive, but not crazily so considering its growth. Robinhood's recent momentum adds fuel to a growing and reengaging customer base, with the accelerated pace of net deposits and Gold-subscription growth the strongest year to date in the most recent monthly data available. Sustaining it is key, with promotions a likely support after fueling the robust 1Q pace that helped lift monthly active users to 13.7 million in 1Q -- the highest since 2Q22. Mr. Tenev is a huge crypto advocate, and has done a decent job growing the company so far. He has a lot to learn as a newly-public CEO, and has certainly made lots of mistakes. But we do think he is improving. We do not really know Mr. Bhatt's story very well. Bloomberg shows insiders at about 4%.
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