Bull case (đ)
The Great Wealth Transfer
Over the next few decades I think wealth will transfer from the boomers to the millennials. Millennials are the generation that use Robinhood the most. They have brand recognition and they operate in traditional markets and in the new Bitcoin market. The app is very easy to use and they are constantly adding products and features to their application. If they can realize the scam shitcoins are and adopt a bitcoin only strategy and start to acquire bitcoin and offer bitcoin financial services they can easily gain market share and capture that incoming wealth from millennials into a powerful financial services platform.
Robinhood already revolutionized investing by making trading fees for stocks zero. Once they brought this to the market legacy companies like Vanguard and Fidelity had to follow suit to compete.
Bear Case (đ»)
They donât have much of a moat. The legacy system can easily catch up and steal market share from them. Plus if the bitcoin economy doesnât take off this will hurt Robinhoodâs growth in the digital asset space. Other negatives include the debacle they had with GameStop and turning off the buy button selling tons of shitcoins that can eventually lead to frauds and scams that can land them in court from individual users or the government itself.
Conclusion
I have a small position in HOOD which did pretty well for me as the stock was up almost 200% in the calendar year 2024.
But it is still down about $0.75 from its IPO price of $38.00 back in. July 29, 2021 but I think over the next 20 years Robinhood will be the de facto brokerage that younger generations will use for both traditional and digital investing.