Robinhood Markets (HOOD) Stock: Is It Still a Buy After a 1,100% Run?

TLDR

• Robinhood stock has surged 1,100% over the past three years, with revenue doubling and earnings jumping 259% in Q3 2024
• The stock trades at a P/E ratio of 49, above the tech sector average of 44, suggesting shares are priced for perfection
• Robinhood went public in 2021 and hasn’t experienced a bear market as a public company yet
• The company added 2.7 million funded accounts to reach 26.8 million total users, while platform assets surged 119% to $333 billion
• Crypto revenue jumped 98% year-over-year to $160 million in the latest quarter, driven by favorable market conditions

Robinhood Markets has delivered returns that most investors only dream about. The trading platform’s stock has climbed 1,100% over three years. But the question facing investors now is whether the party can continue.

Robinhood Markets, Inc., HOOD

The numbers tell an impressive story. Revenue doubled to $1.2 billion in Q3 2024. Earnings per share jumped 259% to $0.61 in the same period.

The company’s user base keeps growing. Funded accounts increased 10% year-over-year to 26.8 million. Platform assets surged 119% to $333 billion.

Crypto has become a major growth driver. Revenue from cryptocurrency trading soared 98% year-over-year to $160 million in the latest quarter. The acquisition of Bitstamp strengthened Robinhood’s global crypto infrastructure.

The company’s revenue trajectory shows explosive growth. From $280 million in 2019 to approximately $2.9 billion in 2024, that’s an annual growth rate near 60%. Revenue climbed 75% from $2.4 billion to $4.2 billion in the past 12 months.

Some analysts project revenue could reach $8.2 billion by 2027. That represents an 82% increase from estimated 2025 figures of $4.5 billion.

The Valuation Question

The stock currently trades at a P/E ratio of 49. That’s above the tech sector average of 44. With shares at approximately $120, the stock trades at roughly 57x estimated earnings for 2025.

When stocks run this hot, expectations run higher. If Robinhood misses Wall Street’s estimates for a few quarters, shareholders might lose confidence. The stock is priced for perfection, leaving little room for disappointments.

Bull markets last about seven years on average. The current run started toward the end of 2022. That could mean more good days ahead, but bear markets always come eventually.

Growth Drivers

The company benefits from several tailwinds. Its young user demographic positions it well for the coming wealth transfer. Tens of trillions of dollars will move from older generations to millennials and Gen Z over the next two decades.

Robinhood is expanding beyond simple trading. Its prediction markets segment has grown rapidly, with billions of contracts traded and over $100 million in annual revenue. This shows the platform can quickly monetize new opportunities.

The company’s adjusted net margins improved from negative in 2021 to about 35% in 2024. Margins could potentially reach 40% as the business scales. The cost structure—technology infrastructure, compliance, and support—is largely fixed, meaning revenue growth translates directly to profit growth.

Some analysts believe the stock could reach $230 or higher. This scenario assumes earnings triple and the P/E ratio stabilizes around 35x instead of dropping to 18x. That would require maintaining strong revenue growth with stable margins.

The Bear Market Risk

Robinhood went public in 2021. It hasn’t faced a prolonged market downturn as a public company. When bear markets arrive, stock trading typically slows down.

The company thrived during the bull market that began in late 2022. But trading volume tends to dry up during market declines. That would directly impact Robinhood’s revenue and growth.

Layoffs have been on the rise recently. Recent moves by the Trump administration to pressure the Federal Reserve have some investors concerned. These factors could signal economic headwinds ahead.

The stock was at just $34 per share in April 2025, about nine months ago. That rapid appreciation means many investors are sitting on huge gains. When market conditions worsen, those investors might be quick to take profits and exit.

Current shareholders should monitor how the company responds to any market or economic slowdown. A shift in growth paired with broader market decline would be a warning sign.

Revenue doubled and earnings soared 259% in the most recent quarter, with total funded accounts reaching 26.8 million users.

The post Robinhood Markets (HOOD) Stock: Is It Still a Buy After a 1,100% Run? appeared first on CoinCentral.