To The Moon

$Robinhood(HOOD)$ 's momentum is undeniable.

In Q3, the company achieved 36% YoY growth, with assets under custody surging by 76% to $152B, while funded accounts climbed to 24M -- a million more than last year. This is evidence of a platform that isn’t just acquiring users but deepening relationships with them. Robinhood is proving it can grow wallet share while retaining its signature user engagement -- a feat many fintech platforms struggle to replicate. Crypto has been a major catalyst for this growth. With crypto transaction revenue soaring 165% YoY -- Robinhood is tapping into a space often dismissed as volatile yet undeniably lucrative.

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Expanding Ecosystem

But Robinhood’s vision doesn’t end with crypto. The company is actively expanding its ecosystem. Advanced tools like the Robinhood Legend platform cater to sophisticated traders, while products like the Robinhood Gold credit card integrate rewards directly into user accounts. These offerings are part of a broader push to diversify revenue streams, moving beyond the unpredictability of transaction fees and building more stable -- recurring income through subscriptions and banking services.

The company’s recent acquisition of TradePMR was what really pushed me to look more into the company. The $90T wealth transfer from Baby Boomers to younger generations provides a once-in-a-generation opportunity, and this acquisition brought $40B in assets under administration. This move represents Robinhood’s entry into the wealth management space -- a sector ripe for disruption. By seamlessly integrating advisory services into its platform, Robinhood is creating a unique blend of elite UI and personalized financial solutions -- setting the stage for long-term growth.

Robinhood’s ability to align itself with broader societal trends further reinforces its adaptability. As economic inequality drives interest in alternative income sources, the platform’s accessibility makes it a natural choice for individuals seeking financial independence. Its potential move into political gambling is another example of this agility -- showcasing its capacity to tap into emerging consumer behaviors while diversifying its revenue streams.

User Experience

What truly differentiates Robinhood -- and what has become abundantly clear this year -- is its unparalleled user experience. The app’s intuitive design isn’t just a feature -- it’s a moat, fostering engagement and loyalty that competitors simply can’t replicate. For years, I avoided Robinhood, grouping it with the broader fintech sector -- a notoriously competitive, low-margin space where companies undercut each other with no clear differentiation. As a thematic investor, fintech lacked the moats and margins I seek in long-term investments. But Robinhood has proven it doesn’t belong in this category. It is more than a brokerage -- it’s the foundation of a much larger vision.

What shifted my perspective this year was witnessing how Robinhood cultivates loyalty -- not through price wars, but by delivering an experience no other platform can replicate. Its seamless functionality, innovative ecosystem, and user-centric design create a stickiness that transcends traditional metrics. Robinhood isn’t just participating in the fintech race -- it’s rewriting the playbook.