Robinhood Markets (NASDAQ: HOOD) has seen its stock surge nearly 26% in the past month, reaching a current price of around $95 per share. Key drivers of this growth include the company’s launch of tokenized stocks for over 200 U.S. stocks and ETFs, available to customers in the European Union, as well as the recent acquisition of cryptocurrency exchange Bitstamp, enhancing Robinhood’s global licensing footprint to over 50 active licenses.
Financial metrics reveal significant growth for Robinhood, with revenues climbing 59.6% in the last 12 months, from $2.0 billion to $3.3 billion, and a quarterly revenue increase of 50% to $927 million. The company boasts robust profit margins, reporting an operating income of $1.3 billion and a net income margin of 48.8%, significantly exceeding the S&P 500 averages. However, Robinhood’s valuation appears high with a price-to-sales ratio of 24.1 compared to 3.1 for the S&P 500.
Despite recent successes, HOOD stock has shown weak resilience during downturns, experiencing a 90.2% drop during the June 2022 inflation shock, compared to a peak-to-trough decline of 25.4% for the S&P 500. Overall, while Robinhood is currently performing strongly in growth and profitability, its financial stability and downturn resilience are categorized as weak.
