Key Points
Robinhood stock has already more than tripled across 2025's trading.
Performance was even stronger over the last three years, with the stock increasing more than 10x over the stretch.
Thanks to strong deposits growth and user engagement, Robinhood is posting fantastic sales and earnings growth.
Robinhood (NASDAQ: HOOD) stock has been on a huge winning streak as users of and engagement with its trading platform have continued to grow at impressive rates. Run-ups for valuations across the cryptocurrency market have also helped power big gains for the stock.
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The company had its initial public offering (IPO) in July 2021 and saw some tough trading shortly after its public debut as a result of macroeconomic headwinds and investors shifting away from growth stocks. Market dynamics have since become far more favorable for growth stocks, and Robinhood's share price is up roughly 208% year to date across this year's trading as of this writing on Aug. 10. Gains would have been even more explosive if you bought the stock three years ago and held on to your position.
Robinhood stock has risen more than 10x over the last three years
Robinhood has been absolutely crushing the market lately. Over the last three years, the stock has risen roughly 1,000%. That means that a $1,000 investment in the stock made back then would now be worth $11,000.
On the heels of its incredible rally, the company is valued at roughly $102 billion and is trading at approximately 62 times this year's expected earnings and 25.5 times expected sales. The latest explosive rally has the stock looking riskier, but Robinhood's momentum is undeniably looking impressive coming off of sales rising 45% year over year and net income rising 105% in the second quarter. Management also said that net deposits on the company's platform had accelerated substantially in July over already impressive figures in May and June.
Robinhood's business model means that the stock could face outsize downside pressures if cryptocurrency and stock market valuations take pronounced bearish turns, but the company's share price could also see outsize benefits if market momentum remains broadly bullish. If the company continue strong deposits and user engagement across its platform, the stock could continue to crush the market this year.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.