[PODCAST] Does Robinhood Stock Have 10x Potential? With Travis Hoium (Ticker: HOOD)
Separating personal morals from your investing portfolio
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I personally do not like Robinhood’s business practices. I would never use the brokerage for my stock trading (team IBKR!) or for any personal finance service. Trust is lacking, to put it mildly.
The same goes for Philip Morris International. Or McDonald’s. Or PepsiCo products.
That does not mean I shouldn’t own the stock. Owning Robinhood shares (disclosure: I never have) will not change its business practices. Someone has to profit from sin stocks, so why not you? This is why I strangely think lung cancer charities should own the tobacco stocks, don’t let anyone else take those juicy dividends for selfish reasons.
Shares of Robinhood are up 700% since the start of 2023. We brought back Travis Hoium from Asymmetric Investing to discuss why he thought the stock had 10x potential a few years back and what the future of the business looks like.
We dive into the details during this hour-long discussion, which I highly recommend.
I can sum up the bare bones of the Robinhood bull case as follows:
The brokerage has a ton of users
These users are young and under monetized, giving the platform huge potential for “ARPU” growth in the years to come.
We can see this in these two KPI charts from Finchat (use our link and get a discount on any paid plan).
Robinhood’s total funded customers haven’t budged much since 2021. However, its total assets under custody have ballooned higher and compounded at a 71% annual rate since 2017.
Even if you hate the company — which I know a bunch of you probably do — you cannot deny this growth. Leave the morals at the door, Robinhood stock belongs on anyone’s watchlist.
-Brett