Ought to You Purchase Robinhood Markets Inventory Whereas It is Beneath $125?

Robinhood Markets (NASDAQ: HOOD) has arguably been one of many extra disruptive names within the inventory market in the course of the previous a number of years. Robinhood’s modern platform, which lets traders purchase and promote shares and commerce choices, popularized the buying and selling of fractional shares and made commission-free buying and selling mainstream.

Robinhood’s platform gained loads of recognition in the course of the COVID-19 pandemic’s top, and it has been a well-liked inventory to commerce because it went public the next yr. This yr was its best-ever yr within the inventory market, as shares hit an all-time excessive of $153.86.

Robinhood is continuous to evolve, permitting cryptocurrency buying and selling, incorporating synthetic intelligence, and increasing into prediction markets. Nonetheless, the inventory has faltered within the final a number of weeks because it faces rising competitors and a generalized weak spot in cryptocurrency costs.

Now buying and selling 24% off its all-time highs, Robinhood shares are on sale and due for an inevitable rebound. Do you have to leap on Robinhood inventory whereas it’s nonetheless under $125?

Robinhood Markets is a well-liked buying and selling platform for shares, exchange-traded funds, cryptocurrencies, and choices. The corporate performed a serious position in making inventory buying and selling accessible — and pleasurable — for retail traders. It operates a mobile-first app that makes buying and selling easy, and it features a vibrant neighborhood platform that lets customers share data, speak about their trades, and see different customers’ efficiency.

As a result of Robinhood provides commission-free trades, it makes its cash by means of fee for order stream (PFOF), wherein market makers pay Robinhood for the best to execute person trades. Robinhood additionally makes cash from curiosity on buyer money and margin loans, and from its premium Robinhood Gold service.

Income within the third quarter was $1.28 billion, up 11% from a yr in the past. Robinhood noticed a 129% improve in transaction-based income and a 100% improve in income from Robinhood Gold subscribers.

The corporate has 26.9 million funded clients, with whole platform property of $325 billion. Whereas these numbers are up considerably from a yr in the past, additionally they present a slowdown on a sequential foundation.

Knowledge supply: Robinhood Markets.

Apparently, cryptocurrency buying and selling is down by a large margin this yr, reflecting the sagging crypto market. When cryptocurrency costs rebound, I anticipate these numbers to get well as nicely.

I do not like firms that stand pat. One of many issues I like finest about Robinhood is that it regularly provides options and evolves — and that is one of many main causes the inventory worth has elevated by 215% in 2025.

Robinhood launched its asset tokenization program in June for the European Union, which made shares out there for buying and selling in European international locations. Tokenization works on the blockchain, changing inventory possession into tradable digital tokens. Robinhood launched the trouble with 200 out there shares, after which elevated that to greater than 400 shares by the top of Q3.

Chief Govt Officer Vladimir Tenev advised analysts that the corporate plans to make tokenized equities out there on secondary buying and selling on Bitstamp, “after which finally them being on DeFi the probabilities actually begin to multiply. You begin fascinated about self-custody, collateralized lending and borrowing, which we predict could possibly be very, very disruptive as nicely.”

Robinhood can also be going full-throttle into prediction markets, which permit customers to guess on the outcomes of future occasions, reminiscent of politics, sporting occasions, or issues like Federal Reserve actions. There are presently greater than 2,100 occasions out there on Robinhood’s app for customers to put prediction bets, starting from who would be the faculty soccer champion to the variety of confirmed measles circumstances.

“Prediction markets are actually on fireplace,” Tenev mentioned. “It is exhausting to imagine that we launched this nearly a yr in the past with the presidential election markets. We have doubled quantity each quarter since then to 2.3 billion contracts in Q3. And the month of October alone was as much as 2.5 billion contracts.”

I can see why Robinhood pulled again in latest weeks. Any time a inventory positive aspects by greater than 200% in a yr, considerations come up that it could be overvalued. The lower in cryptocurrency costs can also be a difficulty. It is not a coincidence that Robinhood’s inventory has fallen together with  Bitcoin and Ethereum in the course of the previous three months.

However Robinhood is on the cusp of some wonderful positive aspects. Analysts anticipate income to rise by almost $1 billion, to $5.43 billion.

Analysts are getting more and more bullish on their worth targets. Of the 5 analysts that issued up to date worth targets within the final two months, all of them are over $145, representing at the least 24% positive aspects within the coming months.

Knowledge supply: Yahoo! Finance.

It is by no means a good suggestion to time the market, so in the event you’re ready for a backside in Robinhood Markets’ inventory, do not. For long-term traders, Robinhood appears like a robust purchase proper now, and traders can be smart to leap in earlier than the inventory crosses the $125 mark once more.

Before you purchase inventory in Robinhood Markets, take into account this:

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Patrick Sanders has positions in Ethereum. The Motley Idiot has positions in and recommends Bitcoin and Ethereum. The Motley Idiot has a disclosure coverage.

Ought to You Purchase Robinhood Markets Inventory Whereas It is Beneath $125? was initially revealed by The Motley Idiot