Robinhood: Increasing My Price Target To $30, Buy Now

Price target: $30 per share

Investment Thesis

Robinhood (HOOD) is headed to $30 by summer 2025. What? That's madness. I had just written that it was headed to $20 by summer 2025 less than 30 days ago. See below.

Data by YCharts

This is true. I stand by that comment. On the 20th of February, I did say buy this stock. And I did say $20 by summer 2025. And yes, the stock is moving so fast, that you should wait for a pullback?

I told you with MoneyLion (ML) and Palantir (PLTR) don't wait for a pullback. I am not always right in my analysis. I'm wrong 50% of the time. And when I'm wrong, you will feel some pain to see a stock that I've recommended fall 20% in the premarket. And that sucks. It's just so frustrating. I feel it too. But in the vast majority of cases, that stock won't be permanently killed. It's just that I got my timing wrong. Normally, my stocks are OK within 6 months. Often a lot sooner.

My thesis with HOOD is incredibly straightforward. The business is becoming more profitable than in 2023. And most importantly, I believe that HOOD is going to see a lot more growth this year than investors are pricing in.

I argue that 19x EBITDA, for a business that has 40% of its market cap made up of cash is an incredible bargain, particularly given that its growing at way faster than 30% CAGR.