Should You Buy Robinhood While It's Below $80?

2 hours ago 1

Reuben Gregg Brewer, The Motley Fool

Tue, May 5, 2026 astatine 7:35 AM CDT 5 min read

Robinhood (NASDAQ: HOOD) has built an awesome concern successful a precise abbreviated play of time. It went from being a start-up to competing with manufacture leaders similar Charles Schwab (NYSE: SCHW) and Interactive Brokers (NASDAQ: IBKR). Investors person rewarded Robinhood for this success, with the banal much than doubling since its archetypal nationalist offering successful 2021, easy outpacing the S&P 500 index's (SNPINDEX: ^GSPC) astir 60% summation implicit the aforesaid span.

There's conscionable 1 tiny occupation that investors request to support successful mind. Robinhood hasn't been astir astir arsenic agelong arsenic its competitors. While the banal is down 50% from its 2025 precocious and trading beneath $80 per share, it mightiness inactive not beryllium worthy buying. Here's what you request to cognize and wherefore the company's archetypal 4th 2026 net update shows that the broker's concern instauration whitethorn not beryllium arsenic beardown arsenic it appears.

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A idiosyncratic covering their eyes with a machine representation of a falling banal graph successful beforehand of them.

Robinhood has achieved immense occurrence

Robinhood deserves a immense magnitude of respect arsenic a business. Not lone has it grown quickly, but it has virtually forced its competitors to alteration their interest structures. In fact, offering escaped trades is however Robinhood built its concern successful the archetypal place, and different discount brokers rapidly followed suit aft seeing its growth.

Robinhood's innovation didn't halt there. It has rapidly added products and services that support gait with lawsuit demands, including options, cryptocurrencies, and prediction markets. It is surviving up to its stated extremity of "democratizing" investing, highlighting successful its yearly study that "We recognize that millions of our customers person utilized Robinhood to participate the fiscal markets for the archetypal time." But therein lies the risk.

Robinhood's first-quarter occupation

When Robinhood reported first-quarter 2026 earnings, it highlighted 15% year-over-year gross growth. That's not atrocious astatine all, and the fiscal institution should beryllium pleased with the outcome. However, if you excavation into the numbers a bit, you commencement to spot immoderate less-positive trends.

For example, transaction-based revenues roseate 7% twelvemonth implicit year. That was heavy driven by the 320% summation successful "other" gross growth. A footnote successful the company's descent platform explains that the "other" class is mostly made up of prediction markets. Prediction markets are blistery close now, truthful it makes consciousness that this is wherever the company's strongest gross maturation came from. Prediction markets are besides comparatively new, truthful the maturation is coming disconnected a tiny base. That makes the maturation look peculiarly impressive.

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