Let me tell you about a trade I made back in April that’s turned into one of my favorite positions for this entire cycle…
Because even though it’s made a big move already, it’s still my top stock for the rest of this year.
I bought Robinhood (HOOD) at $72, and I’m up BIG on the underlying stock alone as it’s risen about 60%. But I don’t think the party’s over. I think we’re still in the early innings.
Most people still think of Robinhood as just another brokerage app. That’s a mistake. This company has evolved into something much bigger, and the market is starting to wake up to it.
The Revenue Story Nobody’s Talking About
When I started building this position, one thing that caught my attention was the disconnect between revenue and share price — trading revenue was rising while HOOD was falling.
That’s the kind of setup I look for.
What really sets Robinhood apart is how it has expanded from a stock-trading app into an all-in-one financial platform. Customers can use it for banking, credit cards, mortgages, retirement accounts, equities, options and crypto.
That gives Robinhood more ways to attract users, keep their assets on the platform and generate revenue throughout their financial lives.
I even use Robinhood’s credit card myself — it offers 3% cash back into your trading account on everything. It’s a loss leader designed to bring people into the ecosystem, but it works.
The company has also offered a 3% match on transferred assets, which I took full advantage of.
Then there are prediction markets. Revenue from that business line is now out-earning Robinhood’s stock-trading revenue. That’s strategically important because it adds another engagement engine without relying entirely on equity-market activity.
Charles Schwab (SCHW) and Morgan Stanley (MS), which owns E*Trade, don’t have the same exposure. That gives Robinhood a different way to draw activity and expand its revenue mix.
Why This Stock Still Has Room to Run
HOOD is trading around $114, below its 52-week high of $154. That’s my first profit target, but I think it can push beyond that level.
One reason HOOD has lagged other financial names is its correlation with Bitcoin. Some see that as a negative, but I see it as a potential tailwind. Bitcoin’s halving cycle has historically helped drive renewed interest in crypto, which can increase trading activity and support Robinhood’s transaction-based revenue.
That exposure cuts both ways — weaker crypto prices can weigh on sentiment and activity. But when the cycle turns favorable, Robinhood can benefit from higher volumes, stronger engagement and renewed investor enthusiasm. In past halving cycles, HOOD has reacted aggressively, and I believe that pattern could create another opportunity.
Company insiders have also been buying aggressively. That tells me they see what I see — a company with multiple revenue engines, strong growth and upside ahead.
I’m not chasing here. I’m holding a position I built strategically and letting the thesis play out. The fundamentals are there, the catalysts are stacking up and HOOD hasn’t even reclaimed its highs yet.
Graham Lindman
Graham Lindman Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Can You Answer 3 Trading Questions With No Prep?
Quick gut check…
If we handed you three questions about a market setup we’re watching right now, no prep…
Would you get all three right?
Most traders won’t.
But you’ve been trading with us for quite a while now, so you’re probably the exception.
And that’s good…
Because at 7 p.m. ET this Sunday, Nate Tucci and I are handing out $1,000 to anyone who can answer all three.
And as simple as the questions could be…
The traders walking away with it won’t be the loudest in the room. They’ll be the ones who showed up prepared.
And keep your eyes peeled for the clues coming your way.
