Market Expectations Consistently Overestimate a Genuinely Attractive Growth Runway for Robinhood

Robinhood’s strategy is to become the number one platform for active traders, the number one financial services provider for the next generation of investors, and to build the number one global financial ecosystem. It tracks progress toward those initiatives with measures like product velocity, market share across trading products, net deposit growth, Robinhood Gold subscriber penetration, and funded global accounts. Overall, we view the strategy as appropriate, though we suspect Robinhood has the best shot at achieving the second pillar of its three-part strategic framework, given its reliance on third-party order execution and structural differences between the attractive US self-directed brokerage market and most non-US analogs.