Should You Buy Robinhood Before Feb. 10?

Robinhood's (NASDAQ: HOOD) banal soared much than 70% implicit the past 12 months. The online brokerage impressed investors with its robust gross growth, expanding margins, and rising profits, but should you pursuit that rally earlier its 4th fourth net study connected Feb. 10?

Over the past decade, Robinhood disrupted accepted brokerages with its commission-free trades, streamlined app, and gamified attack toward investing. It attracted millions of caller retail investors during the buying frenzy successful meme stocks and cryptocurrencies successful 2020 and 2021.

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Its maturation slowed successful 2022 arsenic rising involvement rates drove investors toward much blimpish investments. Still, it continued to grow implicit the pursuing 3 years arsenic involvement rates cooled, it rolled retired caller features, and expanded its subscription-based Gold platform.

From 2020 to 2024, Robinhood's yearly gross much than tripled, from $959 cardinal to $2.95 billion, arsenic its fig of funded customers much than doubled from 12.5 cardinal to 25.2 million. It besides turned profitable by mostly accepted accounting principles (GAAP) successful 2024.

In the archetypal 9 months of 2025, Robinhood's gross roseate 65% twelvemonth implicit twelvemonth to $3.19 billion, and its GAAP nett income accrued 158% to $1.28 billion. That maturation was driven by the integrated enlargement of its halfway concern -- which reached 26.8 cardinal funded customers astatine the extremity of the 3rd 4th -- and by its acquisition of TradePMR past November. Its fig of Gold subscribers -- who get entree to interest-free margin, little borderline rates, higher involvement rates connected uninvested cash, and different perks -- accrued 77% twelvemonth implicit twelvemonth to 3.9 million.

For the afloat year, analysts expect Robinhood's gross and GAAP EPS to emergence 53% and 30%, respectively. From 2025 to 2027, they expect the company's gross and GAAP EPS to turn astatine CAGRs of 19% and 18%, respectively.

Its maturation could gradually dilatory down arsenic its concern matures, and it mightiness not look similar a bargain astatine 37 times this year's earnings. Yet with an endeavor worth of $80.8 billion, it looks much reasonably valued astatine 23 times this year's adjusted net earlier interest, taxes, depreciation, and amortization (EBITDA) -- which cuts done the sound from its acquisitions and stock-based compensation expenses.