At 15% a year, Robinhood could reach $10 billion in revenue in five years; if its price-to-sales ratio drops from 23 to 11, its market value would stay at today’s level, The Motley Fool’s Jennifer Saibil says. Q2 revenue rose 32% year over year as crypto trading slowed.
Funded customers increased 7% year over year to 28.4 million, investment accounts rose 9% to 29.9 million, and Gold memberships grew 39% to 4.8 million. Robinhood is adding bank accounts and credit cards and sees tokenized stocks—tokens backed by real shares—as a way to extend blockchain products beyond cryptocurrency trading. The article says the SEC’s Innovation Exemption allows tokenized securities to trade through venues such as Robinhood.
Saibil considers 30% annual revenue growth unlikely: it would put revenue at $18.6 billion in five years, exceeding the current size of the entire online retail brokerage industry. The article also cites Robinhood’s price-to-earnings ratio at 55.
