Key Points
Robinhood is attracting new customers at a rapid clip.
Revenue grew 45% in Q2, yet Robinhood still offers a limited range of services compared to big brokers.
As it continues to roll out new features, Robinhood could see an avalanche of asset growth.
10 stocks we like better than Robinhood Markets ›
Robinhood Markets (NASDAQ: HOOD) is breaking a new mold in the fintech market. The stock has rocketed 490% higher over the past year, sending its market cap toward $100 billion.
While the stock might look overbought after such a steep rally, its customer assets are still very small compared to other leading financial service companies, which leaves plenty of room for the company (and stock) to grow in value over the long term.
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The more services Robinhood brings customers, the more it grows
Robinhood’s platform assets have increased from $89 billion in the second quarter of 2023 to $279 billion in Q2 2025. With fee-generating services like Robinhood Gold continuing to gain traction, revenue grew 45% year over year in the second quarter to $989 million.
This is why the stock is still a buy at these highs. Robinhood is seeing this much growth while offering limited services compared to big brokers like Schwab. As it catches up, Robinhood could grow into a multitrillion-dollar financial services company.
Robinhood’s pace of new announcements has been remarkable. In the first quarter, it rolled out index options to all customers, and it followed that up in the second quarter with the launch of stock tokens in Europe, allowing those customers to trade over 200 U.S. stocks in the form of tokenized contracts on a blockchain.
By the end of the third quarter, Robinhood plans to launch its new banking service too. These are just a few of the many announcements the company has made recently. As it continues to launch new trading products, including its Cortex AI-powered trading tool later this year, its platform assets will likely continue to grow.
There are several products, including fixed-income securities, that Robinhood can eventually tap into to further support its growth. For perspective, Schwab has over $10 trillion in client assets. I wouldn’t bet against Robinhood CEO Vlad Tenev’s ability to grow Robinhood into one of country’s largest brokerage services. The stock still offers tremendous long-term upside.
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Charles Schwab is an advertising partner of Motley Fool Money. John Ballard has positions in Robinhood Markets. The Motley Fool recommends Charles Schwab and recommends the following options: short September 2025 $92.50 calls on Charles Schwab. The Motley Fool has a disclosure policy.
