Back to top

Image: Bigstock

Robinhood Closes Above $100B Market Cap: Why This Matters

Read MoreHide Full Article

Key Takeaways

  • Robinhood stock closed above the $100B market cap milestone for the first time on Friday.
  • HOOD's Q2 earnings doubled year over year, driven by higher transaction and net interest revenues.
  • Crypto and tokenized stock expansion, plus the Bitstamp deal, boosted investor interest in Robinhood.

For the first time on Friday, Robinhood Markets (HOOD - Free Report) stock closed the session above the $100 billion market capitalization milestone. This was propelled by a more than 200% surge in its stock price this year, which reflects investor confidence in both its financial results and strategic direction.

 

Zacks Investment Research
Image Source: Zacks Investment Research

Robinhood’s second-quarter 2025 performance was outstanding. The company’s earnings not only surpassed the Zacks Consensus Estimate but doubled year over year to 42 cents per share. This was driven by robust transaction-based revenues (up 65%) and net interest revenues (up 25%). The trading platform now serves 26.5 million funded accounts, with more than $279 billion in assets under custody, a 41% year-over-year jump. 

Moreover, Robinhood’s rapid sector expansion (in crypto and tokenized stocks) and strategic moves, such as launching tokenized U.S. stocks in Europe and acquiring Bitstamp, a well-known global crypto exchange, have been attracting investors’ interest. 

Crossing the $100 billion mark is significant beyond scale. It brings greater attention from analysts, institutions and index funds. Further, since Coinbase Global (COIN - Free Report) became the first major crypto firm to be included in the prestigious S&P 500 Index in June, investors are speculating that HOOD stock will be included in the index soon. Currently, Coinbase has a market cap of $79.8 billion.

Another online broker that is competing with HOOD for inclusion in the S&P 500 Index is Interactive Brokers Group (IBKR - Free Report) . At present, Interactive Brokers has a market cap of $112 billion. 

Despite the recent surge, HOOD faces regulatory scrutiny (especially regarding crypto and tokenized assets), volatility in crypto-driven revenues and stiff competition from both legacy brokerages and newer fintech firms like Coinbase and Interactive Brokers. Even so, surpassing the $100 billion milestone cements Robinhood’s place among the world’s largest fintech platforms. This also marks a remarkable transformation from its 2021 meme-stock roots into a mainstream financial powerhouse.

Robinhood’s Valuation & Estimate Analysis

Given the impressive price performance, HOOD shares are currently trading at a massive premium to the industry. The company has a 12-month trailing price-to-tangible book (P/TB) of 13.90X compared with the industry average of 2.66X.

 

Zacks Investment Research
Image Source: Zacks Investment Research


Moreover, the Zacks Consensus Estimate for Robinhood’s 2025 and 2026 earnings implies year-over-year growth of 39.5% and 21.5%, respectively. In the past month, earnings estimates for 2025 and 2026 have been revised upward.

 

Zacks Investment Research
Image Source: Zacks Investment Research

HOOD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Interactive Brokers Group, Inc. (IBKR) - free report >>

Coinbase Global, Inc. (COIN) - free report >>

Robinhood Markets, Inc. (HOOD) - free report >>

Published in