Robinhood Stock Is A Buy (Seriously)
A poor reputation is blinding the market to an intriguing opportunity in HOOD
Highlights:
To skeptics, Robinhood isn’t a brokerage, but a gambling platform, and some of the company’s metrics support that case.
But a closer look suggests there are buy-and-hold investors on the platform. In a normalized interest rate environment, those investors become exceptionally valuable.
Thanks to a fortress balance sheet (60% of market cap in cash), HOOD trades at 1.3x tangible book value, providing downside protection.
Considering that cash, HOOD is an intriguing bet on what the company can become.
Keep reading with a 7-day free trial
Subscribe to Overlooked Alpha to keep reading this post and get 7 days of free access to the full post archives.