Robinhood's Global Push: Is Now the Time to Buy HOOD Shares?
May 30, 2025
Robinhood
HOOD is expanding its desktop trading platform, Robinhood Legend, to the U.K., aiming to broaden its appeal among retail investors seeking more advanced trading tools. The move comes after the company introduced the platform to its U.S. customers in October 2024.
Robinhood Legend is a powerful, customizable, browser-based desktop trading platform designed specifically for active traders, available at no additional cost to all account holders. The platform comes with advanced charting, real-time data, synced layouts and powerful analysis tools. Users can trade U.S. stocks and options with low fees, manage positions easily and personalize their setup across multiple monitors for seamless, professional-grade trading.
Additionally, earlier this month, HOOD announced an agreement to acquire Canada-based WonderFi Technologies Inc. in a C$250 million all-cash deal. The transaction aims to deepen the company’s presence in the Canadian digital asset market. Besides granting regulatory footing in Canada, the transaction strengthens the company’s position in a rapidly growing crypto market.
These initiatives align with Robinhood’s ambition to become a global player as the company looks to expand its presence beyond the Americas and Europe into the Asia-Pacific region. During its first Investor Day conference in December, the CEO, Vlad Tenev, mentioned that the company will set up a new office in Singapore in 2025, which will serve as HOOD’s headquarters for the region.
The company plans to launch digital asset trading in Singapore following the completion of its $200 million acquisition of Luxembourg-based Bitstamp, a globally recognized cryptocurrency exchange. The deal will provide Robinhood with essential regulatory approvals, positioning the company to enter Singapore’s expanding digital asset market.
HOOD’s Business Diversifying Efforts
Robinhood became extremely popular among younger generations in early 2021, riding on the meme stock wave. Nonetheless, since its IPO in July 2021, a lot has happened on the business front.
Robinhood has evolved from a brokerage firm primarily trading in digital assets to a more mature and diversified entity, striving to widen its market and reach. Looking at the numbers, in 2021, HOOD majorly depended on transaction-based revenues (almost 75% of total revenues) to generate income. In 2024, this came down to nearly 56%.
HOOD’s 9-Quarter Total Net Revenue Trend
Image Source: Robinhood Markets, Inc.
Some other initiatives by Robinhood reflect its ambition to become a full-spectrum financial services provider. In March, the company launched Robinhood Strategies, Robinhood Banking and Robinhood Cortex, a suite of new features, to boost the wealth management offerings for its Robinhood Gold members. Further, it launched the prediction markets hub, allowing customers to trade on the outcomes of several major global events. Initially, the hub will be available across the United States through KalshiEX LLC, a Commodity Futures Trading Commission-regulated exchange.
Event contracts gained traction when Robinhood launched them in October 2024, just before the U.S. Presidential elections. Similarly,
Interactive Brokers
IBKR has been actively expanding its event contract offerings to capitalize on rising demand. In April, it launched prediction markets in Canada. Like HOOD, it first introduced event contracts in October 2024, starting with the U.S. election results.
Further, in February, Robinhood acquired Gainesville, FL-based TradePMR, a custodial (having $40 billion in assets under administration) and portfolio management platform specializing in services for Registered Investment Advisors. The company gained immediate credibility and resources to cater to wealthier investors seeking advisory solutions. By foraying into the advisory space, the company now directly competes with established players like
Charles Schwab
SCHW and Fidelity Investments.
Moreover, in July 2024, Robinhood acquired Pluto Capital Inc. With the integration of Pluto’s advanced capabilities, the company is set to revolutionize the investment experience for its users. Also, as part of a diversification effort, HOOD launched a credit card (expanding in the consumer finance space).
Initiatives to change the revenue mix provide HOOD with solid leverage. The company intends to become a one-stop shop for building generational wealth.
Sales Estimates
Image Source: Zacks Investment Research
Cryptocurrencies: A Vital Tailwind for Robinhood
Robinhood’s focus on the cryptocurrency space, through increased tokenization, enhanced platform capabilities and expansion into EU markets, is expected to drive greater cost efficiency and revenue growth. The company is actively pursuing Markets in Crypto-Assets Regulation (MiCA) licenses, which would enable it to offer crypto services across the European Economic Area, expanding its reach to 27 countries.
The planned acquisitions of Bitstamp and WonderFi align with this broader strategy. Bitstamp’s core spot exchange, offering more than 85 tradable assets, will significantly strengthen Robinhood’s crypto product suite. Meanwhile, WonderFi brings two of Canada’s leading regulated crypto platforms — Bitbuy and Coinsquare — with more than C$2.1 billion in assets under custody. These acquisitions will enable Robinhood to provide trading, staking and custody services.
As the platform diversifies and enhances its offerings, Robinhood’s cryptocurrency revenue is well-positioned for growth, supported by increasing investor interest in crypto as both a return-generating and diversification tool. Currently, Robinhood supports several major cryptocurrencies — Bitcoin, Ethereum, Dogecoin, Litecoin, Solana and Toncoin.
Crypto Revenue Quarterly Trend
Image Source: Robinhood Markets, Inc.
HOOD Rewards Shareholders
In 2024, Robinhood announced a share buyback plan (for the first time) to repurchase up to $1 billion of its outstanding common stock. In April, the company increased its existing authorization by $500 million to $1.5 billion.
As of April 30, 2025, approximately $833 million worth of shares remained available for repurchase. HOOD plans to complete the remainder of its total authorization over the next roughly two years.
Robinhood is on solid ground, with significant cash reserves. As of March 31, 2025, it reported cash and cash equivalents of $4.42 billion.
Litigation & Probes Surrounding Robinhood
Robinhood operates in a highly regulated industry and falls under the scrutiny of numerous authorities. This, thus, exposes the company to regulatory risks, resulting in hefty fines and restrictions that may affect its profitability.
In March 2025, Robinhood’s units agreed to pay $26 million to settle Financial Industry Regulatory Authority (“FINRA”) allegations for failing to respond to red flags about potential misconduct and not verifying the identities of thousands of customers.
In January 2025, the company agreed to pay a $45 million fine for violating more than 10 securities law provisions. In September 2024, the company faced a $3.9 million penalty to settle crypto withdrawal failures. In 2023, the company faced defeat in proceedings at the Massachusetts Supreme Judicial Court regarding the supervision of product features and marketing strategies and paid a fine of $7.5 million.
These fines have made investors cautious about the company’s operations and internal control procedures.
Buy, Sell or Hold Robinhood Shares?
HOOD shares are having an impressive run on the bourses. This year, the stock has soared a whopping 71.7%, significantly outpacing the industry’s growth of 7.6%. Also, it has fared better than its peers, Schwab and Interactive Brokers.
HOOD’s YTD Price Performance
Image Source: Zacks Investment Research
Over the past month, the Zacks Consensus Estimate for 2025 has remained unchanged at $1.22, while for 2026, it has been revised upward to $1.47. This reflects a bullish sentiment among analysts.
Estimate Revision Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HOOD’s earnings implies 11.9% and 20.5% year-over-year growth in 2025 and 2026, respectively.
Given the solid price performance, HOOD shares are currently trading at a massive premium to the industry. The company has a forward price-to-earnings (P/E) of 48.23X compared with the industry average of 13.57X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
Similarly, Schwab and Interactive Brokers have forward P/E ratios of 19.06 and 28.83, respectively. Thus, HOOD is expensive compared with its peers, too.
Yet, Robinhood’s global expansion, strategic acquisitions, new product launches and diversification efforts will likely help it grow its market share and presence. Rising investor demand for cryptocurrency and solid liquidity are other positives.
Nonetheless, concerns have been raised regarding increased regulatory oversight due to the blurred distinction between gambling and trading in the prediction markets hub. Also, foraying into the banking business amid intense competition keeps investors cautious about its success. Uncertainties related to tariffs pose a near-term risk.
Hence, investors must keep an eye on macro developments and other headwinds and see how Robinhood is navigating the challenging times. Thus, the stock is a cautious bet for long-term investors, but they should be prepared for short-term volatility.
At present, Robinhood carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
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