Key Insights
- HOOD stock slipped even as the company announced its entry into Indonesia.
- It acquired two companies and plans to launch its app in 2027.
- Technical analysis points to more gains in the near term.
Robinhood stock remained under pressure despite a bullish growth story. The stock dropped 15% from its highs even as the company announced its expansion into Indonesia. With two local brokerage acquisitions and a new app launch expected in 2027, the move underscores Robinhood’s global ambitions. But will the stock rebound amid concerns over its valuation?
HOOD Stock Slips as Robinhood Expands to Indonesia
Robinhood, a company established in 2013 in the United States, is continuing its global expansion in a bid to boost its growth. It has already expanded in several European countries, where it recently started offering tokenized stocks and ETFs.
The company is now targeting Indonesia, one of the top countries in Southeast Asia. According to Bloomberg, it has signed to acquire two local brokerages: PT Buana Capital Sekuritas and PT Pedagang Aset Kripto.
The report added that Robinhood aims to use these buyouts to offer local apps for stocks and crypto trading. It hopes to become the biggest player in a country that has seen traders soar from 5 million five years ago to over 20 million today.
Robinhood also hopes to expand in other strategic locations, with some analysts expecting it to ultimately move to India, a country with over 150 million retail traders.
Robinhood’s growth is accelerating
Robinhood’s entry into Indonesia comes a few months after the company entered the blue-chip S&P 500 Index. It also happened as its growth momentum accelerates.
The most recent results showed that the number of Robinhood’s customers and their assets have continued rising. Its funded customers rose to 26.8 million in the third quarter from 24.32 million in the same period last year. This growth was partially because of its recent Bitstamp acquisition, which gave it a bigger presence in the crypto industry.
Robinhood Gold subscribers jumped to 3.88 million, while the total platform assets soared to $333 billion from $152 billion in the third quarter of 2024.
All these figures helped to boost its revenue to $1.27 billion, up by 100% from the same period last year. While the Bitstamp acquisition contributed to this growth, other internal factors had a role to play. The most important one was its focus on tokenization, which has helped it to offer hundreds of stocks and ETFs to European customers.
Growth to Continue, But Valuation Concerns Remain
Wall Street analysts believe that the company’s growth will continue in the coming quarters. The average estimate among analysts is that the company’s revenue will grow by 31% in the current quarter to $1.33 billion.
If this estimate is accurate, Robinhood’s annual revenue will come in at $4.51 billion, up by 52% from what it made a year ago. Its annual EPS is expected to hit $2, up from $1.56 last year.
Robinhood deserves a premium for its growing market share and aggressive international expansion. However, there are signs that the company’s valuation has become stretched.
It has a forward price-to-earnings (P/E) ratio of 65, much higher than the sector median of 13. Additionally, its PEG ratio has increased to 2.76, which is higher than the estimated 1.09.
Robinhood stock price technical analysis
The daily timeframe chart shows that the HOOD stock price has rebounded in the past few days. It has jumped from a low of $102 in November to the current $132.
The stock has remained above the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bulls remain in control. It has also formed a descending broadening wedge pattern, a common bullish reversal sign.
HOOD stock price could retest $154.36 if bulls hold above key averages. A breakout above this resistance may open the path toward $160, fueled by global expansion momentum.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
