Should You Buy Robinhood While It's Below $150?

• Robinhood has shaken up the discount broker industry.

• The institution is highly innovative and has aggressively moved into caller concern categories.

• Despite the terms drop, Robinhood's banal remains expensive.

• 10 stocks we similar amended than Robinhood Markets ›

Robinhood Markets (NASDAQ: HOOD) has gone from upstart to manufacture disruptor to manufacture heavyweight successful a precise abbreviated play of time. The company's occurrence has been rewarded connected Wall Street with a swiftly rising banal price. The banal is up much than 200% since its 2021 archetypal nationalist offering. That said, the shares person fallen 30% from their 52-week highs. Should you bargain the banal portion the shares are trading beneath $150?

Robinhood has fundamentally tapped into younger investors who are utilized to surviving successful the integer world. It fundamentally started arsenic an app, utilizing gamification to support its customers engaged. Some of the broker's aboriginal efforts person been near behind, noting that investing astir apt shouldn't beryllium treated arsenic a game. However, the biggest lingering interaction Robinhood has had is connected commissions.

Robinhood was the institution that, effectively, forced the remainder of the discount broker manufacture to little trading costs to zero, oregon adjacent to it. It was a immense displacement successful the manufacture concern model. However, with customers flocking to escaped trading connected the Robinhood platform, competitors similar Charles Schwab (NYSE: SCHW) didn't truly person a choice.

That isn't the lone large determination Robinhood has made. To support gait with its customers, the broker has besides begun offering crypto trading and, much recently, sports betting. One tin statement whether either of these offerings should beryllium described arsenic investing, but it is wide that Robinhood customers admit these services.

To enactment immoderate numbers connected that, Robinhood's funded lawsuit number roseate from 24.3 cardinal successful the 3rd 4th of 2024 to 26.8 cardinal successful the 3rd 4th of 2025. More awesome is that the full assets connected its level accrued to $333 cardinal successful the 3rd 4th of 2025 from $152 cardinal a twelvemonth earlier. Customers intelligibly similar what Robinhood is offering and are rewarding it with their patronage and cash.

It makes consciousness that investors person been excited astir Robinhood stock. The summation from the archetypal nationalist offering (IPO) is impervious of that. The caller pullback, however, has to beryllium taken with a atom of salt. At the high, the stock's valuation was extreme, sitting astatine a price-to-earnings (P/E) ratio of astir 70 times. The 30% terms diminution since that high-water people has brought the P/E down to 44 times.