Robinhood (HOOD): Valuation in Focus as GalaxyOne Debuts With Direct Competition in Trading and Crypto

Galaxy Digital’s launch of GalaxyOne, which brings commission-free stock and crypto trading to retail investors, comes at a time when Robinhood Markets (HOOD) is already under scrutiny for platform reliability. This new competition has caught the attention of investors who are watching for shifts in the brokerage landscape.

See our latest analysis for Robinhood Markets.

This push and pull with new rivals like Galaxy Digital has played out as Robinhood’s momentum surged in 2025. Shares have skyrocketed nearly 29% over the past month, cementing a stunning 1-year total shareholder return of almost 498% and an eye-catching 3-year total return above 1,300%. That explosive climb shows investors are still betting on Robinhood as the landscape shifts. Recent platform hiccups and aggressive competition are reminders that risk perceptions can turn just as quickly as they rise.

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With shares at record highs and key rivals gaining ground, the big question is whether Robinhood’s current price reflects all future growth, or if these market shifts are opening up a fresh buying opportunity.

Most Popular Narrative: 18% Overvalued

Robinhood’s last closing price stands notably above the narrative’s fair value estimate, putting its current market valuation under the microscope as analysts debate future growth and risk.

The current valuation may be assuming continued explosive growth in young, tech-savvy trader engagement and wallet share. However, there are emerging signs that demographic interest may shift away from traditional equities toward alternative assets, crypto, or even decentralized finance, which would constrain Robinhood's long-term revenue growth and customer base expansion.

Read the complete narrative.

Want to peek inside the engine driving that surprising valuation? This narrative is built around assumptions of explosive growth and shifting customer trends, but the exact moves that underpin Robinhood’s price target may surprise you. Curious which bullish and controversial profit margins, revenue paths, and multiples form this calculation? Find out what keeps analysts excited and skeptics cautious.

Result: Fair Value of $128.94 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Robinhood's ongoing product diversification and robust growth in customer assets could strengthen long-term earnings and potentially challenge the current overvaluation thesis.

Find out about the key risks to this Robinhood Markets narrative.

Build Your Own Robinhood Markets Narrative

If you have a different take or want to see how the numbers line up on your own terms, you can craft your own narrative in just minutes using Do it your way

A great starting point for your Robinhood Markets research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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