Robinhood Markets, Inc. (HOOD): A Bear Case Theory

We encountered a Declining thesis On Robinhood Markets, Inc. On SixSIGMACAPITAL: Mobility in the alternative to financial markets by SixSIGMAPITAL solutions. In this article, we will summarize the bullfield on the hood. Robinhood Markets, Inc. At 106.77 dollars from July 28^Y. Hood’s Throw and Forward P/E 61.01 and 75.76, respectively, according to Yahoo’s funding.

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Robinhood Markets Inc. was (Hood), known for its commission -free trade and expansion of fast products, taking advantage of the continuous bull market, but many structural factors indicate an increase in negative risks. Since Q1 2023, total revenues have increased from $ 441 million to $ 927 million in the first quarter of 2025, with net interest revenues increased from $ 208 million to $ 290 million and transactions -based revenues that accommodate $ 207 million to $ 583 million.

However, more than half of the transactions revenue now comes from the speculation of options and coding trading, whether it is very periodic and exposed to sharp contractions in the market decline. Net interest revenues, which have grown with high prices, faces double pressure: It is expected that large price cuts are expected to once bend the chairman, and tend to cash balances for customers – the main engine in favor of separate funds – to decrease sharply during the bear markets.

Options, encryption and net benefits revenue formed 84 % of the total Q1 2025 revenues, creating great dependence on the agents exposed. Despite the last impressive performance – including the growth of YOY revenue by 50 %,> 100 % EPS growth, and a rule of 40 degrees above 100 – trading the hood with a 27x sales and 57x profit evaluation, leaving it very exposed if the current Tailwinds fades.

Technicians confirm excessive stock, as RSI is traded in 72.2 and trades over 100 % higher than SMA for 200 days. Periodic shrinkage, low money rates, and platform criticism can lead to a great correction, which leads to an attractive short opportunity once negative differences appear in the main performance indicators or patterns of top.

Previously, we covered a Saudi thesis In Robinhood Markets, Inc. (HOD) by Chit Chat shares in May 2025, with highlighting the base of unknown young users, the height of custody assets, and ARPU growth capabilities. The stock has been estimated about 64 % since then, driven by these growth directions. SixsgmacAPital shares a contradictory point of view, emphasizing the journal of revenue and evaluation risks.

Robinhood Markets, Inc. It is not listed in our list from 30 shares more popular among hedge boxes. According to our database, 76 Hood hedgeboards wallet held at the end of the first quarter, which amounted to 79 in the previous quarter. While we acknowledge the capabilities of Hood as an investment, we believe that some artificial intelligence shares provide greater potential and carry less risks on the negative side. If you are looking for a stock of artificial intelligence with less than very apprecia The best inventory of artificial intelligence in the short term.