Analysis Report on Robinhood Markets

Based on our overall findings shown above, we can have the result that based on the DCF analysis and relative valuation, the stock of Robinhood Company is undervalued now and going to raise in the future five years. Besides, based on the analysis of its business activity, Robinhood will continue its high-speed growth and dominate the competition among the new type e-Brokers. It also has an excellent management board with good backgrounds and great decision power. Therefore, our analysis from multi-aspect shows that Robinhood Markets is a company that is worth investment.

However, there are also risks related to the company. Its revenue structure can be highly affected by the regulation. If the regulations change in disadvantaged ways, its business activity can be harmed seriously. Moreover, cryptocurrencies, which are the main income sector of it, also have an unclear future, and the volatility of it is really large. The company should increase its business lines and make its revenue less dependent on certain types of assets. Besides, the management board should also learn from the past lawsuit and keep a good reputation among the users. In this way, Robinhood can increase its user stickiness and build a solid foundation for further growth.

So, as Robinhood Markets stock is underpriced now, our investment thesis for Robinhood Market is to buy it now and wait for its price to get to over $14.91 for investors whose investment horizon is less than one year. And for investors whose investment horizon is greater than that, our investment thesis for Robinhood Market is to buy it now and wait for its price to get to over $46.81.