Robinhood's Gold Subscribers Surge 76% to 3.5 Million, Attracting $34.6M Investment
Robinhood, the popular commission-free trading platform, has seen a significant boost in its gold subscription base, with a 76% increase to 3.5 million users. This growth is diversifying the company's revenue streams and attracting investor confidence, as reflected in a recent $34.6 million investment by TB Alternative Assets.
The hedge fund's investment, amounting to 241,680 shares, represents a 5.2% stake in its U.S. equity portfolio, indicating a strategic long-term bet on Robinhood's stock market performance. Analysts predict strong revenue growth for the company, reaching $4.3 billion by 2025, with continued growth expected thereafter. Expanding margins and global expansion plans in prediction markets are also expected to enhance Robinhood's stock market value further.
Robinhood's stock market performance has already soared by over 380% in the past year, outperforming the S&P 500 by 375 percentage points. The company's revenue increased by 45% to $989 million in the second quarter, and net profit exploded by 105% to $386 million. However, the stock's price-to-earnings ratio stands at over 65, significantly higher than established competitors like Morgan Stanley, which has a P/E ratio of 16.
All eyes are on Robinhood's third quarter results, due on November 5, as investors anticipate growth momentum in gold subscriptions and user numbers. Despite some risks due to market volatility, the recent investment by TB Alternative Assets and strong analyst recommendations suggest a positive outlook for Robinhood's stock market performance, which is predicted to rise through 2026 and 2027.
