Should you buy Robinhood stock? (October 2024)

Published first at https://www.3minutebreakdowns.com
Robinhood stock analysis. Ticker: $HOOD

Robinhood just released several new products which got investors excited. Lower margin rates, index options, futures trading and the big one: a new desktop platform called Legend. The question now is whether or not to buy Robinhood stock?

At the latest price, Robinhood now has a market cap of 24.3 billion dollars. The company also has 4.8 billion of cash on its balance sheet taking the enterprise value to 19.5 billion. Revenue over the last 12 months comes to 2.2 billion with 290 million of net income and 818 million of adjusted ebitda. That means Robinhood stock is now valued at 8.7 times revenue, 84 times earnings and 24 times EBITDA. Of course, that EBITDA figure doesn’t include a large amount of stock based compensation, about 312 million.

There’s no doubt that Robinhood is executing extremely well. New products like 24 hour trading, retirement accounts, Robinhood Gold and now a new desktop platform continue to attract new users to the platform.

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