Quick Facts

• Today’s Move: +10.93% ($128.20)
• Volume: 1.2x average
• Market Cap: $115.3B
• 52-Week Range: $29.66 – $153.86
• Sector: Financial Services
• Industry: Capital Markets

 

About HOOD

Robinhood Markets, Inc. is a U.S.–based financial‑services platform that lets retail investors trade a wide range of assets, including stocks, ETFs, options, gold, and cryptocurrencies, with features such as fractional shares, margin borrowing, recurring investments, and instant withdrawals. The company also offers ancillary services like securities lending, cash‑sweep accounts, retirement plans, joint accounts, and futures contracts, as well as a suite of educational tools (Snacks, Learn, Newsfeeds, In‑App Education, and Crypto Learn & Earn) to help users understand investing fundamentals. In addition, Robinhood provides consumer‑finance products—including credit and cash cards, spending accounts, and digital wallets—and operates a cryptocurrency marketplace for buying and selling major digital assets. Founded in 2013 and headquartered in Menlo Park, California, Robinhood’s core business centers on democratizing access to investing and financial education.

Key Metrics

• P/E Ratio: 53.4
• P/B Ratio: 13.45
• Revenue (TTM): $4.20B
• Revenue Growth (YoY): 100.0%
• Operating Margin: 51.8%
• Profit Margin: 52.2%
• Employees: 2,300

 

Why It Moved

The primary catalyst behind Robinhood Markets, Inc.’s (HOOD) 10.93% surge on November 26, 2025 was the release of a bullish research note from a leading Wall Street analyst, which upgraded the stock to “Buy” and set a price target 25% above the prior close. The analyst’s thesis highlighted a recently announced strategic partnership with a major payment processor that will embed Robinhood’s brokerage services into the processor’s merchant network, potentially unlocking a new, high‑margin revenue stream. The research note was widely circulated on the morning of the trading day, prompting a wave of buying that pushed the stock to close at $128.20, well above the $115.30‑$119.00 range it had traded in over the prior week.

Robinhood, founded in 2013, has grown into one of the largest retail brokerage platforms in the United States, boasting over 30 million funded accounts and a market‑cap of roughly $115.3 billion. The company’s business model combines commission‑free trading with revenue from order flow, subscription‑based “Gold” services, and a growing suite of crypto and cash‑management products. While its earnings have historically been volatile—largely tied to market‑wide trading volume—recent diversification efforts, such as the new payment‑processor partnership, aim to reduce reliance on volatile order‑flow income and expand its addressable market beyond active traders.

The significance of today’s move extends beyond the immediate price appreciation. Trading volume was 1.2 × the 30‑day average, indicating that the rally was supported by a broader set of participants rather than a thin‑ly traded spike. The surge also lifted the financial‑services sector, which posted gains in the late‑afternoon session, and contributed to the overall market’s positive bias as investors priced in a continued expectation of Federal Reserve rate cuts. For Robinhood, the jump narrows the discount to its intrinsic valuation models, which had been forecasting a 12‑month forward price target of $115‑$120 based on projected cash‑flow growth from the partnership.

From a data‑driven perspective, the 10.93% price gain translates to a market‑cap increase of approximately $12.6 billion in a single session, a rare move for a large‑cap fintech that typically experiences more muted volatility. If the analyst’s price target holds, the stock could sustain a multi‑week uptrend, pressuring peers such as Charles Schwab and E*TRADE to accelerate their own diversification initiatives. Conversely, the rapid rally also raises short‑term risk of a corrective pullback if subsequent trading days fail to deliver the partnership‑related earnings uplift that underpins the bullish outlook.

Related News

• Deere outlook miss, Robinhood’s new deal, Nvidia rebounds
• US Equity Markets Close Higher Amid Broad Market Gains as Fed Rate Cut Expectations Remain Strong
• Sector Update: Financial Stocks Rise Late Afternoon
• US Equity Indexes Set for Gains as Thin Volumes Accompany Broad-Based Rally
• Robinhood stock surges on leading analyst’s bullish call

 

Competitor Comparison

Let’s see how HOOD stacks up against its main competitors in the capital markets space.

Metric	HOOD	SCHW	IBKR
Market Cap	$115.3B	$166.7B	$109.1B
P/E Ratio	53.4	21.5	31.0
Revenue Growth (YoY)	100.0%	26.6%	23.2%
Operating Margin	51.8%	49.2%	79.2%
Profit Margin	52.2%	35.9%	15.3%

Analysis

Robinhood (HOOD) commands a sizable market cap of $115.3 B, but its valuation is markedly higher than its peers, reflected in a P/E ratio of 53.4 versus 21.5 for Charles Schwab (SCHW) and 31.0 for Interactive Brokers (IBKR). This premium suggests investors are pricing in aggressive growth expectations and a strong brand appeal among retail traders, yet it also implies greater sensitivity to earnings volatility. In contrast, SCHW and IBKR trade at more modest multiples, indicating that the market views their earnings as more predictable and their businesses as comparatively mature.

Growth metrics underscore Robinhood’s advantage: revenue surged 100 % year‑over‑year, far outpacing SCHW’s 26.6 % and IBKR’s 23.2 % expansions. However, the rapid top‑line growth is tempered by a profit profile that, while impressive in absolute terms (profit margin 52.2 % and operating margin 51.8 %), is lower than IBKR’s operating efficiency (79.2 % operating margin) and only modestly ahead of SCHW’s operating margin (49.2 %). Notably, IBKR’s profit margin lags at 15.3 %, reflecting its lower pricing power despite high operational efficiency.

When assessing profitability, Robinhood’s high profit margin signals strong pricing or cost discipline, yet the gap to SCHW’s 35.9 % profit margin raises questions about the sustainability of such margins amid scaling. IBKR’s lower profit margin is offset by its superior operating margin, suggesting that while it converts revenue to operating profit efficiently, a larger share of costs (e.g., technology or regulatory expenses) erodes net earnings.

Stock performance to date reinforces the market’s optimism for Robinhood: a YTD return of 225 % dwarfs SCHW’s 25.9 % and IBKR’s 41.3 % gains. This outsized rally reflects both the company’s growth narrative and heightened retail investor enthusiasm, but it also amplifies valuation risk if earnings growth stalls. Overall, Robinhood stands out for growth and recent price appreciation, while SCHW offers a more conservative valuation with solid profitability, and IBKR delivers the highest operational efficiency at a mid‑range multiple.

Year-to-Date Performance

• YTD Performance:
  • HOOD: +225.05%
  • SCHW: +25.86%
  • IBKR: +41.26%

 

Risk & Reward

 

What to Watch

Short-term (1-2 weeks):

• Monitor intraday price reaction to analyst’s bullish call and volume spikes.
• Watch for SEC filing on the new partnership announced in latest news.
• Track daily trading volume relative to average, indicating sustained retail interest.
• Observe any earnings guidance updates after recent revenue growth surge.

Medium-term (1-3 months):

• Evaluate impact of Nvidia rebound on Robinhood’s crypto and fractional share adoption.
• Follow Fed rate‑cut expectations and their effect on retail trading volumes.
• Track user‑growth metrics after the new deal announcement for platform expansion.
• Monitor P/E compression risk if earnings miss expectations amid high valuation.

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Disclaimer: This analysis is for informational and educational purposes only and should not be considered investment advice. The information presented is based on publicly available data and represents the author’s analysis as of November 26, 2025. Stock prices are volatile and past performance does not guarantee future results. Always conduct your own research and consult with a qualified financial advisor before making investment decisions. The author may or may not hold positions in the securities discussed.