Robinhood's $100 Billion Valuation Drives $4.28 Billion Volume to 14th U.S. Rank

On August 11, 2025, Robinhood Markets (HOOD) recorded a trading volume of $4.28 billion, ranking 14th among U.S. stocks, while its shares declined 0.88%.

Robinhood’s market capitalization surpassed $100 billion for the first time in early August, driven by a year-to-date stock surge exceeding 200%. This milestone reflects investor confidence in its financial performance and strategic initiatives. The company’s Q2 2025 earnings doubled year-over-year to 42 cents per share, fueled by a 65% increase in transaction-based revenue and a 25% rise in net interest income. It now manages 26.5 million funded accounts and $279 billion in assets under custody, up 41% year-over-year.

Strategic expansions into crypto and tokenized assets, including the launch of tokenized U.S. stocks in Europe and the acquisition of Bitstamp, have attracted investor interest. Analysts note the potential inclusion of HOOD in the S&P 500 Index, following Coinbase’s recent addition. However, regulatory scrutiny, crypto-driven revenue volatility, and competition from traditional brokers and fintech peers like Interactive Brokers remain risks. Despite these challenges, the $100 billion valuation cements Robinhood’s status as a leading fintech platform, evolving from its meme-stock origins to a mainstream financial services provider.

The valuation premium is evident, with HOOD trading at a 13.90X price-to-tangible book ratio, far above the industry average of 2.66X. Earnings estimates for 2025 and 2026 project 39.5% and 21.5% year-over-year growth, respectively, with upward revisions in recent months. The stock currently holds a Zacks Rank #1 (Strong Buy).

A backtested strategy of purchasing the top 500 high-volume stocks and holding for one day generated a 166.71% return from 2022 to present, outperforming the benchmark by 137.53%. This highlights the role of liquidity concentration in short-term performance, particularly in volatile markets where liquidity-driven momentum amplifies gains in high-volume equities like those in the financial sector.