Robinhood: 'Buy' The Dip While Assets Keep Growing

Gary Alexander33.6K FollowersFollow5ShareSavePlay(10min)Comment(1)SummaryRobinhood has dropped ~40% YTD and over 50% since October highs, reflecting investors' fear that market volatility will hurt the company's trading activity.I reiterate my 'Buy' rating on HOOD, citing a significantly compressed valuation at ~20x EBITDA and opportunistic FY26 guidance amid broad risk-off sentiment.Robinhood has reported strong trading activity through March, particularly with strong equity/options volumes and very active prediction markets contracts.Its margin book has also risen ~2x y/y, driving huge growth in margin interest, which is becoming a larger chunk of the company's revenue. FreshSplash/E+ via Getty Images Though the S&P 500 has shaken off virtually all of its losses since the conflict in Iran began, it's undeniable that the stock market has taken a "risk off" attitude. Investors have fled to safety (which in 2026 means energy stocks and semiconductor stocks), while theThis article was written byGary Alexander33.6K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure: I/we have a beneficial long position in the shares of HOOD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.