Robinhood Closes Above $100B Market Cap: Why This Matters

For the first time on Friday, Robinhood Markets HOOD stock closed the session above the $100 billion market capitalization milestone. This was propelled by a more than 200% surge in its stock price this year, which reflects investor confidence in both its financial results and strategic direction.

Robinhood’s second-quarter 2025 performance was outstanding. The company’s earnings not only surpassed the Zacks Consensus Estimate but doubled year over year to 42 cents per share. This was driven by robust transaction-based revenues (up 65%) and net interest revenues (up 25%). The trading platform now serves 26.5 million funded accounts, with more than $279 billion in assets under custody, a 41% year-over-year jump. 

Moreover, Robinhood’s rapid sector expansion (in crypto and tokenized stocks) and strategic moves, such as launching tokenized U.S. stocks in Europe and acquiring Bitstamp, a well-known global crypto exchange, have been attracting investors’ interest. 

Crossing the $100 billion mark is significant beyond scale. It brings greater attention from analysts, institutions and index funds. Further, since Coinbase Global COIN became the first major crypto firm to be included in the prestigious S&P 500 Index in June, investors are speculating that HOOD stock will be included in the index soon. Currently, Coinbase has a market cap of $79.8 billion.

Another online broker that is competing with HOOD for inclusion in the S&P 500 Index is Interactive Brokers Group IBKR. At present, Interactive Brokers has a market cap of $112 billion. 

Despite the recent surge, HOOD faces regulatory scrutiny (especially regarding crypto and tokenized assets), volatility in crypto-driven revenues and stiff competition from both legacy brokerages and newer fintech firms like Coinbase and Interactive Brokers. Even so, surpassing the $100 billion milestone cements Robinhood’s place among the world’s largest fintech platforms. This also marks a remarkable transformation from its 2021 meme-stock roots into a mainstream financial powerhouse.

Robinhood’s Valuation & Estimate Analysis

Given the impressive price performance, HOOD shares are currently trading at a massive premium to the industry. The company has a 12-month trailing price-to-tangible book (P/TB) of 13.90X compared with the industry average of 2.66X.

Moreover, the Zacks Consensus Estimate for Robinhood’s 2025 and 2026 earnings implies year-over-year growth of 39.5% and 21.5%, respectively. In the past month, earnings estimates for 2025 and 2026 have been revised upward.

HOOD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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