Prediction: Robinhood Stock Sets a New Record Before 2029
2026-10-02 07:14
•Daniel Sparks •The Motley Fool
••• •••• Axe Cap view
Robinhood’s High Stakes Growth Gamble
Robinhood’s rapid earnings growth faces headwinds amid a stretched valuation.
Robinhood’s recent rebound to $112 after a record $152 is impressive, especially given its 30%-plus earnings growth in 2025 and early 2026. The company’s push into prediction markets and options trading shows an ability to find new, high-margin revenue streams. That said, a forward PE of 38 is steep compared to traditional brokers like Schwab at about 12x, demanding consistent execution. For South African investors, Robinhood’s story warns against chasing high-flying US tech without solid earnings to back valuation—while our local banks, Standard Bank and FirstRand, offer steadier growth at more reasonable multiples. The USD/ZAR also matters here; rand weakness could amplify Robinhood’s appeal as a US growth proxy. But if crypto volatility or deposit slowdowns intensify, growth could falter quickly. Best to watch from the sidelines unless prices normalize. this is just our opinion and not financial advice
Avoid Robinhood at current levels due to valuation risks. Prefer selective exposure in local banks like Standard Bank or FirstRand, which trade on better earnings visibility. Monitor USD/ZAR for currency-driven shifts in foreign investment appetite.
- HOOD
- Standard Bank
- USD/ZAR
- Crypto revenue volatility could weigh on Robinhood’s earnings
- Overly optimistic valuation could lead to sharp corrections
6/10
Robinhood Markets stock closed at a record $152.46 in October 2025 but has since fallen to ~$112. The article predicts the stock will return to its record high before the end of 2028, requiring approximately 18% annual earnings growth. While the company demonstrated strong earnings growth (31% in 2025, 27% in H1 2026) and accelerating revenue momentum, particularly in prediction markets and options trading, risks include slowing customer deposits, crypto revenue volatility, and a high valuation of 38x forward earnings. The author concludes the stock could reach the target but questions whether it's a good investment at current prices.
Our take is based on reporting first published by The Motley Fool.
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