![]() Bloomberg reports that Robinhood is testing new cryptocurrency wallet and transfer features for its app. ![]() Robinhood Markets, best known as a zero-commission stock brokerage, has been increasingly focusing on improving its cryptocurrency offerings. Robinhood Is Pushing Further Into Crypto Business. Think cryptocurrency could disrupt the banking industry? Looking for upside from Bitcoin adoption, without buying into the cryptocurrency itself? You can find more about our theme on Cryptocurrency Stocks See our analysis on Robinhood Valuation: Is HOOD Stock Expensive Or Cheap? for more details on Robinhood Stock’s valuation and comparison with peers. We value Robinhood stock at about $39 per share, slightly below the current market price. See our analysis on Robinhood Valuation: Is HOOD Stock Expensive Or Cheap? for more details on Robinhood Markets stock’s valuation and comparison with peers. We value the stock at about $32 per share, or about 13x our projected 2022 revenues for the company. Robinhood stock now trades at about $24 per share, around 35% below its IPO price and almost 65% below its all-time highs, presenting a decent entry point for investors. Robinhood has also been adding new features to its crypto brokerage solution which could enable it to compete with Coinbase, which is a highly profitable crypto brokerage. The company has also built a sizable customer base with more than 22 million funded accounts and this could allow it to cross-sell other financial products and services. However, Robinhood has proven to be agile and innovative and has a good understanding of young retail investors and this should help it adapt even if the market cycle turns. We’ve already seen some of these trends play out in Robinhood’s Q3 results. Robinhood’s growth through the pandemic was driven by investing fads such as “meme” stocks and the speculative cryptocurrency, Dogecoin, and it’s probably a given that these trends will fade as inflation rises and the Fed likely raises rates during or after next year. ![]() ![]() So is Robinhood stock a buy following the recent sell-off? It probably is. ![]()
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