Robinhood Stock Analysis

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Robinhood Stock Analysis

Robinhood (Hood) Stock: Where It Will Be In 10 Years?

Robinhood (HOOD) started in 2023 and quickly became a famous online brokerage for millions of users. The platform rose to fame due to its commission-free trades and a gamified platform.

Robinhood gained mainstream attention during the pandemic era. At that time, people had free time, stimulus checks, and the interest rates were at record low levels. All of these factors helped Robinhood to become the top platform it is today.

Robinhood Stock Price Will Jump

Robinhood (HOOD) went public in 2021 with a share price of $38. Now, it trades above the $100 handle, which clearly shows how much progress it has made over the years.

According to analysts, the adjusted earnings of Robinhood will rise by 76% for the full year. Similarly, the revenue is also expected to increase by 53% during the same period.

This clearly shows that Robinhood is still growing, but it will soon reach a saturation point. But despite this, the current share price of Robinhood is an absolute bargain given its massive potential.

In the next 10 years, experts believe that Robinhood will become a more comprehensive fintech platform with more features. In fact, Robinhood could also venture into wealth management and investment services powered by AI.

Robinhood is also working on tokenizing more ETFs, stocks, US treasuries, and other investment vehicles. If successful, it will be easy to trade these assets at very low fees.

According to estimates, the adjusted EBITDA of Robinhood will increase by 20% CAGR over the next 30 years. If this turns out to be true, then the Robinhood stock price will increase by 4x in the next 10 years.

There's no doubt that Robinhood got the first mover advantage due to its policies and easy-to-use platform. But, we must also realize that it is a brokerage house at its core & isn't something that can compete with blue chip stocks.

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