Part 2: Deep dive on Robinhood (HOOD)
Paid subscribers to Jonah’s Growth Stock Deep Dives receive ~2 deep dives per month (8,000+ words), ~2 mini deep dives per month (2,000+ words) and quarterly earnings commentary on most of my portfolio companies plus access to my investment portfolio (up +160% YTD in 2024, up +134% in 2023 and up +2,600% since January 2020) with real-time activity, notes/commentary and charts throughout the day.
My investment strategy is pretty simple. I want to own 20-30 high-quality growth stocks with the best fundamentals at the most reasonable valuations — if the fundamentals begin to disappoint or the valuation no longer looks compelling I will trim or sell my position. If the fundamentals remain strong and valuation remains reasonable then I’ll add on pullbacks. I only want to own stocks that have at least 50% upside within the next 1-2 years and at least 100% upside within the next 3-4 years. If I buy stocks that are too expensive, the fundamentals aren’t good enough or my investment thesis is flawed — then I’ll never hit my investment targets. My objective is to maximize performance in good markets and minimize losses in bad markets. I accomplish this by being very selective in what I own but also using technical analysis and hedges to protect my portfolio in market downturns.
Company: Robinhood
Ticker: (HOOD)
Website: Robinhood.com
IPO date: July 29, 2021
IPO price: $38.00
Current stock price: $21.86
Outstanding shares: 878.83 million (dual-class share structure)
52-week high: $23.25 on June 06, 2024
52-week low: $7.91 on November 16, 2023
ATH: $85.00 on August 04, 2021
Market cap: $19.211 billion
Net cash/debt: +$4.7 billion (net cash)
Enterprise value: $14.511 billion
Headquarters: Menlo Park, California, United States
Number of employees: 2,200+
Average price target from analysts: $21.14
Investor Relations: investors.robinhood.com/
Q1 2024 Earnings Report: https://investors.robinhood.com/news/news-details/2024/Robinhood-Reports-First-Quarter-2024-Results/default.aspx
Q1 2024 Investor Presentation: https://s28.q4cdn.com/948876185/files/doc_financials/2024/q1/Q1-2024-Earnings-Presentation.pdf
April 2024 Operating Data: https://s28.q4cdn.com/948876185/files/doc_news/Robinhood-Markets-Inc.-Reports-April-2024-Operating-Data-2024.pdf
Outline
Introduction [part 1]
Company Background [part 1]
Opportunity [part 1]
Business Model [part 1]
Competitive Advantages [part 1]
Risks [part 1]
Valuation [part 2]
Investment Model [part 2]
Analysts [part 2]
Technicals [part 2]
Conclusion [part 2]
Here was part 1 of the HOOD deep dive in case you missed it…