Today’s Stock: Robinhood Markets, Inc. (HOOD)Today’s Stock: Robinhood Markets, Inc. (HOOD)
The brokerage that changed investing forever with zero trading fees. Also responsible for turning off the buy button during the GameStop short squeeze fiasco. They offer banking, investment, and bitcoin and stablecoin exchange services.
My Thoughts 💭My Thoughts 💭
HOOD is the main reason I got serious about investing and stock picking. Before then I just stuck my savings into an index fund now I lose all my money (that’s not in bitcoin of course) picking stocks.
Once the GameStop event happened I deleted my account and boycotted HOOD but after fooling around with other brokerages I noticed the HOOD app is really user friendly plus I wanted a brokerage account to run experiments with and to speculate on companies.
Let’s take a look at the fundamentals from a bitcoin perspective!
At 111.6k sats per share ($68,189), and no dividend. This company will have to grow at or faster than bitcoin to make it a worthwhile investment.
The company trades at a PE 36 which means investors are paying $36 to access $1 of earnings. Stock is on the expensive side.
Let’s review some key fundamentals to determine if this stock is worth spending sats on.
PE:PE:
Expected Growth:Expected Growth:
Revenues and expenses:Revenues and expenses:
Balance Sheet:Balance Sheet:
Dividend:Dividend:
No dividendNo dividend
Bitcoin per share:Bitcoin per share:
NoneNone
Ownership breakdown :Ownership breakdown :
Leadership:Leadership:
The fundamentals of this company are good. The balance sheet is good, the growth prospects are decent, a healthy profit margin, they offer Bitcoin exchange services which gives them entry into the future Bitcoin economy, the valuation is a bit rich so the price can come down if they miss growth projections but overall this is a solid business.
From a Bitcoiner perspective . Paying 111k sats for this company is reasonable. They run a Bitcoin exchange which is great but also offer degen options like shitcoins, prediction markets, options, and futures which I don’t love but that’s the beauty of an open market. May the best investments win.
Here is the performance according to Simply Wall Street
I bought shares in this company long time ago when the market hated thee stock and it traded under $10 then it caught a massive bid and my small investment was up
1,000%.
I bought shares because the platform is easy to use and as boomers die more millennials and Gen Z are more likely to invest with HOOD than Goldman Sachs or some other Wall Street stalwart plus they have a great design and engineering team that allows customers to buy and sell Bitcoin easily.
Right now I’m never selling the shares I have now. HOOD is a good company and I’m happy with my investment. If I get a huge fiat windfall some day I may add to my position.
Looking to add more $HOOD as well (added some too early last week 😭). We just hit a death cross which is traditionally a bearish signal but can be a lagging indicator overall.
In the age of SAASapocalypse they have a real user and financial moat and the best user interface. Everyone I know that plays stocks uses Robinhood and there's no reason they can't absorb the retail crypto market as well.
This is my bullish case for the stock