Robinhood stock analysis (October 2023)

Should you buy Robinhood stock? Ticker: HOOD Join 10,000 investors here: https://www.overlookedalpha.com Adjusted Ebitda over the last 12 months is also positive at 395 million which gives the company a valuation of only 8 times EBITDA. But Robinhood stock is not quite as cheap as it sounds. The company has 5.2 billion of cash, but it needs to safeguard some of that in case something goes wrong. After all, a lack of collateral almost destroyed the business during the GameStop short squeeze in 2021. The company had to find around 3.7 billion dollars to stay in business. So let’s assume Robinhood actually has around 1.5 billion of excess cash. That means the stock is more realistically valued at 4.1 times revenue or 18 times EBITDA. Meanwhile, annual revenues are still 8% below their 2021 peak and monthly active users have more than halved. #hood #stocks #investing #overlookedalpha