A Look At Robinhood Markets (HOOD) Valuation After Blockchain Launch And Pre IPO Fund Expansion

Robinhood Markets (HOOD) is back in focus after rolling out its own blockchain, launching a US$1b closed-end fund for pre-IPO tech names, and seeing trading interest tied to the latest Bitcoin rally.

See our latest analysis for Robinhood Markets.

Despite the latest blockchain rollout and pre IPO fund launch, Robinhood’s recent share price performance has been choppy. A 5.64% 1 day share price return and a 3.08% 7 day share price return contrast with a 27.54% 30 day share price decline and a 39.52% 90 day share price decline. At the same time, the 1 year total shareholder return of 58.71% and the very large 3 year total shareholder return near 7x highlight how quickly sentiment around the stock can swing as crypto activity, product launches and fresh competition from platforms like Coinbase reshape how investors view its risk and potential.

If this news has you thinking about where growth and disruption might show up next, it could be worth scanning our list of 17 cryptocurrency and blockchain stocks for other ways to gain exposure to the broader crypto ecosystem.

With HOOD trading at US$77.53 against a published analyst target of about US$130 and recent returns swinging sharply in both directions, you have to ask yourself: is there a genuine opportunity here, or is future growth already fully priced in?

Most Popular Narrative: 60.2% Undervalued

At a last close of $77.53 against a narrative fair value of $194.61, the gap between market price and projected worth is wide and worth understanding.

Robinhood (NASDAQ: HOOD) just delivered one of its strongest quarters to date, not just in growth, but in profitability and user monetization. For Q2 2025, total net revenues jumped 45% year-over-year to $989 million, while net income surged 105% to $386 million. Diluted EPS doubled to $0.42, marking Robinhood’s most profitable quarter ever. Platform engagement continues to strengthen. Net Deposits were $13.8 billion, and over the last twelve months, deposits reached $57.9 billion, equivalent to 41% of asset growth. Platform assets nearly doubled year-over-year to $279 billion, helped by crypto recovery, equities appreciation, and the recent Bitstamp acquisition.

Read the complete narrative.

Want to see how those revenue, deposit, and margin assumptions are stretched into a fair value more than double today’s price? The narrative leans on compounding profitability, higher monetization per user, and a rich future earnings multiple that is usually reserved for market leaders. Curious how those ingredients combine to support a $194.61 figure instead of $77.53? The full breakdown connects each assumption to that gap.

Result: Fair Value of $194.61 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, this story can change quickly if trading and crypto activity cools, or if regulators take a tougher stance on tokenization and digital asset products.

Find out about the key risks to this Robinhood Markets narrative.

Another Angle on Valuation: Earnings Multiple Sends a Different Signal

That $194.61 fair value from the narrative sits awkwardly next to what the current earnings multiple is saying. At $77.53, Robinhood trades on a P/E of 37.1x, which is much richer than the US Capital Markets industry at 23x, the peer average at 23.7x, and above its own fair ratio of 27.1x. In plain terms, the market is already paying a premium, so the key consideration is whether that premium represents upside potential or valuation risk.

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

Curious whether the optimism in this story really balances the concerns, or if the risk side is heavier than it looks? Act while the information is fresh and weigh the trade off yourself by checking out the 2 key rewards and 1 important warning sign.

Looking for more investment ideas?

If Robinhood has your attention, do not stop here. Widen your watchlist now so you are not looking back wishing you had broadened your options earlier.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com