Parkev Tatevosian, CFA on $HOOD (Nov 3, 2026)

Robinhood announced its quarterly financial results , with revenues up 12% compared to the same quarter last year. The company wants to be at the forefront of artificial intelligence technology, and has already created a product that allows you to trade automatically through your account, stating that $250 million in customer accounts has been allocated for automated trading.

I will talk about why this is so important for Robin Hood in the long run. Also , investors are asking me if Robinhood stock finally represents a buying opportunity.

Remember that I've been covering the company's news all year , and my conclusion was that it wasn't a buying opportunity.

This prediction has turned out to be correct so far, as the stock has fallen by more than 19% since the beginning of 2026. So, in this video, I want to answer whether the stock finally represents a buying opportunity on the dip, as well as share with you the details of the company's recent performance.

Robinhood's latest earnings report was a look at this trend. Robinhood reported record trading activity in stocks, options and prediction markets, and said revenues from prediction markets specifically rose by more than 500% compared to the same period last year.

Therefore, Robinhood is a very cyclical business.

When markets rise, Robinhood stock performs well because investors join the platform. They hear in their local news that the stock market is reaching record highs or that Bitcoin prices are reaching record highs.

They hear from their friends, family members, and colleagues at work and school about a particular investment they have purchased that is experiencing significant growth. This increases enthusiasm, increases trading activity, increases deposits, and opens new accounts.

But the opposite is also true. When the market is down, when cryptocurrency prices are falling , and when their friends and family members are losing money, they don't really talk about it, do they?

You may have those relatives, friends, or colleagues who, when they make large profits from their investments, talk about it and boast about it, but you never hear about their losses.

You don't hear about those cryptocurrencies that they bought and lost 99% of their value. You only hear about those that were bought and increased in value.

Therefore, the same applies to Robin Hood. When the market declines, trading activity decreases, and profits also decrease.

Specifically, Robinhood reported that its cryptocurrency trading revenue fell by 55% to $120 million amid a sharp decline in activity, which was generally in line with Bitcoin's 2026 results.

Looking ahead, and with Wall Street analysts keeping a close eye on Robinhood, they estimate that the company will achieve 20% earnings per share growth over the next few years.

This estimate will take into account both good and bad times , and is a broader measure of the company's long-term performance.

I think this is a reasonable estimate of Robinhood's stock profitability growth, as they are not only adding new accounts, but the accounts are increasing their engagement as they add new features and encourage traders on the platform to increase their activity.

Here I will talk about artificial intelligence and agents. This is the main reason why Robin Hood was interested in getting people to use agents in trading, because agents can be more proactive.

They can buy and sell repeatedly, and that's where Robin Hood makes money from every trade, from every single transaction.

Robin Hood generates revenue from this, whether through issuing orders or other means such as fees, etc. Therefore, the more you trade, the better for Robinhood, and the spread of AI proxy may facilitate more trading, which is good news for Robinhood.

Not equally good news for investors. Generally, the more you react , if you are overly active, it will not lead to long-term success. Therefore, I have updated my Robin Hood estimates and the amount of free cash flow I expect the company to generate between today and the very long term, and my conclusion remains the same: the stock appears overvalued and does not look like a good buying opportunity right now.

Speaking of the stock now, the business is likely to continue growing, and as we have seen previously , earnings per share are likely to continue increasing, but the stock price at $91.60 , I think, already reflects those expectations and more.

I calculate the fair value of the stock at $58. So, to answer the question I posed in the introduction, do I think it's a buying opportunity? I would say no, not yet. I will reiterate my " hold" rating for this company today.