Is Robinhood Stock a Buy Now?
Key Takeaways
It's worth noting that What's remarkable is Robinhood (HOOD 2. Conversely, 79%) has experienced an impressive surge over the past year, capturing investors with its remarkable turnaround (something worth watching)....
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5 min read
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cryptocurrency
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July 27, 2025
07:00 AM
The Motley Fool
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It's worth noting that What's remarkable is Robinhood (HOOD 2
Conversely, 79%) has experienced an impressive surge over the past year, capturing investors with its remarkable turnaround (something worth watching)
Moreover, After facing scrutiny for its payment-for-order-flow model and its role in the 2021 meme stock frenzy, the company is becoming a formidable player in the financial landscape
Robinhood is adding customers and assets at an impressive rate, and it continues to do so as it upgrades its platform, grows the, and expands the investments its customers can purchase
It's even diving into company tokens and prediction (quite telling), given the current landscape
However, the stock has skyrocketed by 173% since the start of the year
So, is now the time to buy, in light of current trends
Moreover, Let's take a closer look and find out
Robinhood's turnaround has been led by asset growth A few years ago, Robinhood was a struggling company
It faced intense scrutiny from regulators and customers a, and its growth stagnated
Fast forward to today, and it has kick-started growth, enhanced its platform, and is pursuing several avenues to drive growth
On the other hand, One upgrade is Robinhood Legend, amid market uncertainty
Nevertheless, This browser-based platform, the company says, aims to be "the most state-of-the-art desktop platform for trading," as Robinhood seeks to persuade active traders to switch, in this volatile climate
The company has also expanded the ducts that customers can trade, including index options, futures, and event contracts that capitalize on the growing ity of prediction
The data indicates that company also wants to tap into its young customer base and help fulfill their financial needs (an important development), in today's market environment
In recent years, it has introduced services such as wealth management, advisory services, savings, and spending management, along with retirement accounts with matching contributions (this bears monitoring)
However, Robinhood's efforts have paid off big time
Moreover, Meanwhile, Since the end of 2023, platform assets have more than doubled, from $102. 6 billion to $255 billion (as of May 31) (which is quite significant)
Moreover, Image source: Robinhood, given the current landscape
Market analysis shows has been making a lot of moves Millennials and Gen Zers hold 75% of Robinhood's funded accounts, and a massive wealth transfer over the coming decades could bode well for the company's very long-term asset growth (quite telling)
According to a wealth transfer report from Boston wealth management firm Cerulli Associates, these generations could inherit assets worth up to $124 trillion over the next 25 years
Earlier this year, the company closed a roughly $300 million acquisition of TradePMR, giving it a foothold in fessional advisory services as it seeks to expand its presence in wealth and asset management
Robinhood is also expanding its presence in the cryptocurrency and digital asset space
This analysis suggests that closed its acquisition of Bitstamp, a crypto exchange, in June, helping expand its crypto presence across the European Union and the United Kingdom
The company also believes it is uniquely positioned to lead in tokenization, which involves transforming traditional financial assets, such as equities and private investments, onto blockchain nology to increase efficiency and liquidity
One of the recent announcements that stirred up discussion was its tokenization of OpenAI and SpaceX for European users, both of which are not publicly traded
The data indicates that tokens track the private market valuations of these companies, in this volatile climate
Additionally, Robinhood believes this is the future. "These tokens give retail investors indirect exposure to private, opening up access, and are enabled by Robinhood's ownership stake in a special purpose vehicle," a company spokesperson said
The stock is up significantly in the last year With the flurry of positive news, Robinhood stock has run up significantly
On the other hand, Over the last year, it has gained 334% and is up 173% year to date in 2025
In contrast, The stock's surge has sent its valuation soaring
Today, it trades at a price-to-sales ratio (P/S) of 28
However, 9 based on next year's jected sales, given current economic conditions
Furthermore, On an income basis, it is priced at 66. 7 times forward earnings
Furthermore, HOOD PE Ratio data by YCharts
Robinhood is expected to incur higher expenses this year compared to last, and it estimates that its adjusted operating expenses for the year will be between $2. 085 billion and $2. 185 billion as it ramps up spending to invest in new ducts, features, and international expansion (quite telling)
This d outlook also includes an additional $85 million of anticipated costs related to the TradePMR acquisition, considering recent developments
Is the stock a buy today
A lot is happening for Robinhood, and as a holder, I'm optimistic
Management has done a stellar job growing its and building its asset base over the past several quarters
This effort is paying off, and the company is now looking to capitalize on its growing asset base through wealth management
The evidence shows 's also exploring more unique ducts, such as event contracts and asset tokenization, which could appeal to its younger user base (something worth watching)
One drawback is that the stock is expensive
If you do buy Robinhood today, you are paying a steep premium
With a beta of 2. 3, the stock experiences more than twice the volatility of the benchmark S&P 500 index, making it vulnerable in the event of a downturn You could consider buying some s today (quite telling)
However, I think investors may be better off waiting for the price to dip and become more reasonably valued before purchasing the stock, given the current landscape.
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