Bullish on Robinhood's long-term retail dominance despite earnings miss

Bullish-17.66%

AI Summary

The author dismisses Robinhood's recent earnings miss as short-term noise, emphasizing its dominant retail positioning and long-term potential to surpass Charles Schwab's market cap, with a clear plan to accumulate shares on further dips.

Robinhood reported Q3 revenue of $1.42 billion, up 12% year-over-year, a new high, compared to the market expectation of $1.43 billion. Adjusted EPS was $0.60 against an expected $0.64, resulting in both revenue and profit misses, leading to a 7% pre-market drop. This is primarily due to slowing revenue growth, but Robinhood possesses the most perfect retail DNA for financial trading products, capturing the hearts and wallets of young people. Its goal is to exceed Charles Schwab's $150 billion market cap. I'll start buying when it drops further.

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