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.