1.Robinhood Stock Analysis
2. Robinhood Founder
3. Robinhood Financials & Valuation
1. ROBINHOOD STOCK ANALYSIS :
i. OVERVIEW. Robinhood is a Online stock broker platform which focuses on the retail investor & pioneered the concept of free trading founded in 2013.
robinhood stock analysis
ii. BUSINESS MODEL: The Company Makes the Majority of Revenue from “PAYMENT FOR ORDER FLOW” , “buy/sell spread” from Retail & Institutional Investors.
How Payment for Order flow works Robinhood. Source: https://mingclee.medium.com/payment-for-order-flow-robinhood-589fabcfbaa7
2. Robinhood MANAGEMENT (FOUNDER)
Great Founder Traits: Long term vision, Tech Entrepreneur, Deep Knowledge of Industry
Robinhood Founder Source: Tech Crunch: https://edition.cnn.com/2021/02/04/investing/robinhood-ceo-vlad-tenev-finra/index.html
,FOUNDER LED :VLADMIR & Baiju Skin in the Game. (6% of company each) INSIDER TOTAL: 13.9%.
Robinhood Shareholders. Source. SimplyWallstreet.
INVESTORS: Ark invest 0.2% of company.
3. ROBINHOOD FINANCIALS & VALUATION:
Robinhood Stock Analysis Valuation. Copyright Motivation2invest
Robinhood Stock Analysis Valuation. Copyright Motivation2invest (Original Template professor of Finance New York University)
Assuming a 50% revenue growth rate next 6 years, We have a Fair Value per share of $35. This is close to the original IPO price.
Stock only 14% overvalued right now.
This is NOT Financial Advice.
RISKS OF INVESTING:
, i. Commodity Broker/Competition (lots of brokerages for stocks many offer free trading now), Many Brokers already gained large market share in the international market, could, limit robin hood expansion.
ii. Robinhood controversy – Suspending orders in Meme stocks, damaged brand reputation shows platform limitations.
Robinhood Gamification criticism, gambling addictions SEC probe INSIDER BUYING: Ark Invest & Borad member (Jonathan ) small amount $2 million at $38.
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