Tom Lee Calls Robinhood 'Morgan Stanley' For Gen Z, Draws 1980s Wall Street Broker Analogy To Explain Fintech's Rise
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 09 2025
0mins
Should l Buy HOOD?
Source: Benzinga
Comparison of Robinhood and Morgan Stanley: Tom Lee from Fundstrat likens Robinhood Markets Inc. to Morgan Stanley for the younger generation, similar to how discount brokers like Charles Schwab emerged for baby boomers in the 1980s, emphasizing Robinhood's innovative approach and user-friendly design.
Robinhood's Market Position and Challenges: Despite facing regulatory scrutiny and being excluded from the latest S&P 500 index reconstitution, Robinhood has a significant market capitalization of $80.54 billion, bolstered by its aggressive cryptocurrency expansion plans and new tokenized equity offerings in Europe.
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Analyst Views on HOOD
Wall Street analysts forecast HOOD stock price to rise
20 Analyst Rating
16 Buy
4 Hold
0 Sell
Strong Buy
Current: 70.110
Low
130.00
Averages
156.24
High
181.00
Current: 70.110
Low
130.00
Averages
156.24
High
181.00
About HOOD
Robinhood Markets, Inc. is creating a financial services platform for everyone, regardless of their wealth, income, or background. It uses technology to provide access to the financial system. Its offerings include Brokerage, Robinhood Crypto, Custody, Robinhood Wallet, Robinhood Gold, and Robinhood Gold Card. Its Brokerage services include investing, options trading, fractional trading, recurring investment, access to investing on margin, fully paid securities lending, cash sweep, instant withdrawals, Robinhood retirement, 24-hour market, joint investing accounts, and event contracts. It also offers a variety of ways for its customers to grow their financial knowledge, including Robinhood Learn, In-App Education, Newsfeeds, Sherwood Snacks, and Crypto Learn and Earn. Its self-clearing system, order routing system, data platform, and other back-end infrastructure deliver the capabilities that allow its customers to focus on investing, saving and spending.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Robinhood Achieves Record Performance in 2025
- Significant Revenue Growth: Robinhood achieved $4.5 billion in revenue for 2025, with a 27% year-over-year increase in Q4, demonstrating strong performance in the fintech sector despite challenges in the cryptocurrency market.
- Increased Customer Activity: The company reported $16 billion in net deposits for Q4, totaling $68 billion for the year, indicating sustained market share growth and significantly enhanced customer engagement.
- Rise of Prediction Markets: Robinhood's prediction market segment saw over 300% revenue growth in 2025, particularly after launching pro and college football contracts, facilitating over 12 billion event contract trades, showcasing the strong appeal of this new business line.
- Decline in Crypto Revenue: Despite robust overall performance, Robinhood experienced a 38% year-over-year drop in crypto revenue in Q4, highlighting the impact of Bitcoin price volatility on its results, with future recovery in the crypto market being crucial for revenue growth.
See More
Robinhood CEO Advocates for Financial Inclusivity
- Advocacy for Inclusivity: Robinhood CEO Vlad Tenev expressed on social media that his belief in financial inclusivity has strengthened as the company has grown, emphasizing the need to ensure that the best tools and opportunities are not concentrated in a small elite, thereby promoting broader wealth distribution.
- Company Growth and Revenue: Since its founding in 2013, Robinhood has emerged as a leading retail brokerage, achieving a record revenue of $4.5 billion in 2022, reflecting a 52% year-over-year growth, which highlights its strong growth potential in the individual investor market.
- Technological Innovation: Tenev recently teased the development of Harmonic AI, an AI system designed to independently solve complex mathematical problems, indicating the company's ongoing commitment to technological innovation that could further enhance its competitive edge in the market.
- Future Vision: Tenev's shift from “whether we can create” to “what deserves to exist” reflects a profound contemplation of the future of financial services, aiming to reshape the investor experience through broader access and ownership, thereby driving sustainable industry growth.
See More
Robinhood Markets: Significant Growth Potential Ahead
- Significant Revenue Growth: Robinhood achieved $4.5 billion in revenue for 2025, with a 27% year-over-year growth in Q4 despite challenges in the cryptocurrency market, showcasing strong performance in stock and options trading that further solidifies its market position.
- Increased Customer Activity: The company reported $16 billion in net deposits in Q4 2025, totaling $68 billion for the year, with average revenue per user rising 16% year-over-year to $191, indicating that Robinhood is rapidly expanding its market share.
- Surge in Prediction Markets: Since launching its prediction market in October 2024, Robinhood's
See More
Robinhood's Prediction Markets Show Growth Potential
- Crypto Revenue Decline: Robinhood's cryptocurrency revenue fell by 38% year-over-year to $221 million in Q4, highlighting the volatility and unpredictability of this segment, which could adversely affect overall financial performance.
- Rapid Growth in Prediction Markets: The establishment of Rothera, an independent derivatives exchange in partnership with Susquehanna International Group, is expected to launch in mid-2026, with prediction markets becoming Robinhood's fastest-growing revenue segment, potentially providing a more stable income source.
- Engagement Opportunities: By allowing users to speculate on outcomes across sports, politics, and culture through event contracts, Robinhood is likely to attract ongoing user engagement, especially during major events like elections and sports tournaments, enhancing the sustainability of this business.
- Regulatory Risk Considerations: Despite the significant potential of prediction markets, they face regulatory scrutiny, with lawmakers considering additional restrictions; Robinhood must navigate these challenges carefully to secure future growth opportunities.
See More
Analysis of Robinhood's Prediction Market Strategy
- Crypto Business Volatility: Robinhood's cryptocurrency trading revenue fell by 38% year-over-year in Q4 to $221 million, highlighting the unpredictable nature of this segment, which could adversely affect overall revenue stability.
- Growth Potential in Prediction Markets: The company is establishing Rothera, an independent derivatives exchange in partnership with Susquehanna International Group, expected to launch in mid-2026, with prediction markets becoming Robinhood's fastest-growing revenue segment, potentially offering a more reliable income source.
- Market Participation Opportunities: Robinhood enables users to speculate on outcomes across sports, politics, and culture, and with numerous major events occurring annually, scaling this business could lead to relatively stable growth.
- Regulatory Risk Considerations: Despite the significant potential of prediction markets, they face regulatory scrutiny, as some lawmakers are considering imposing additional restrictions; unfavorable regulatory conditions could pose substantial challenges for Robinhood's future development.
See More
Market Watch: Oil Price Surge and Stock Market Turmoil
- Oil Price Surge Impact: Following President Trump's address on the Iran war, which raised escalation concerns, U.S. crude benchmark WTI surged 9% to $109 a barrel, putting downward pressure on the stock market and negatively affecting investor sentiment.
- Bank of America Upgrades Vale: Bank of America upgraded Vale from hold to buy, suggesting that now is an attractive entry point for investors in the iron ore producer, despite Vale's stock dropping nearly 7% since the Iran conflict began, while iron ore prices have risen about 8%.
- Wix's Outlook Downgraded: UBS downgraded Wix from buy to hold, with analysts believing its 2026 outlook indicates a slowdown in core business growth from 12% last year to 8% this year, and despite efforts to integrate AI capabilities, the company remains vulnerable to disruption by AI.
- Cheniere Energy Price Target Increased: Citigroup raised Cheniere Energy's price target from $280 to $330 while reiterating its buy rating, as supply disruptions in the Middle East could benefit U.S. LNG exports long-term, with shares up about 17% since the war began.
See More
Robinhood Achieves Record Performance in 2025
- Significant Revenue Growth: Robinhood achieved $4.5 billion in revenue for 2025, with a 27% year-over-year increase in Q4, demonstrating strong performance in the fintech sector despite challenges in the cryptocurrency market.
- Increased Customer Activity: The company reported $16 billion in net deposits for Q4, totaling $68 billion for the year, indicating sustained market share growth and significantly enhanced customer engagement.
- Rise of Prediction Markets: Robinhood's prediction market segment saw over 300% revenue growth in 2025, particularly after launching pro and college football contracts, facilitating over 12 billion event contract trades, showcasing the strong appeal of this new business line.
- Decline in Crypto Revenue: Despite robust overall performance, Robinhood experienced a 38% year-over-year drop in crypto revenue in Q4, highlighting the impact of Bitcoin price volatility on its results, with future recovery in the crypto market being crucial for revenue growth.
See More
Robinhood CEO Advocates for Financial Inclusivity
- Advocacy for Inclusivity: Robinhood CEO Vlad Tenev expressed on social media that his belief in financial inclusivity has strengthened as the company has grown, emphasizing the need to ensure that the best tools and opportunities are not concentrated in a small elite, thereby promoting broader wealth distribution.
- Company Growth and Revenue: Since its founding in 2013, Robinhood has emerged as a leading retail brokerage, achieving a record revenue of $4.5 billion in 2022, reflecting a 52% year-over-year growth, which highlights its strong growth potential in the individual investor market.
- Technological Innovation: Tenev recently teased the development of Harmonic AI, an AI system designed to independently solve complex mathematical problems, indicating the company's ongoing commitment to technological innovation that could further enhance its competitive edge in the market.
- Future Vision: Tenev's shift from “whether we can create” to “what deserves to exist” reflects a profound contemplation of the future of financial services, aiming to reshape the investor experience through broader access and ownership, thereby driving sustainable industry growth.
See More
Robinhood Markets: Significant Growth Potential Ahead
- Significant Revenue Growth: Robinhood achieved $4.5 billion in revenue for 2025, with a 27% year-over-year growth in Q4 despite challenges in the cryptocurrency market, showcasing strong performance in stock and options trading that further solidifies its market position.
- Increased Customer Activity: The company reported $16 billion in net deposits in Q4 2025, totaling $68 billion for the year, with average revenue per user rising 16% year-over-year to $191, indicating that Robinhood is rapidly expanding its market share.
- Surge in Prediction Markets: Since launching its prediction market in October 2024, Robinhood's
See More
Robinhood's Prediction Markets Show Growth Potential
- Crypto Revenue Decline: Robinhood's cryptocurrency revenue fell by 38% year-over-year to $221 million in Q4, highlighting the volatility and unpredictability of this segment, which could adversely affect overall financial performance.
- Rapid Growth in Prediction Markets: The establishment of Rothera, an independent derivatives exchange in partnership with Susquehanna International Group, is expected to launch in mid-2026, with prediction markets becoming Robinhood's fastest-growing revenue segment, potentially providing a more stable income source.
- Engagement Opportunities: By allowing users to speculate on outcomes across sports, politics, and culture through event contracts, Robinhood is likely to attract ongoing user engagement, especially during major events like elections and sports tournaments, enhancing the sustainability of this business.
- Regulatory Risk Considerations: Despite the significant potential of prediction markets, they face regulatory scrutiny, with lawmakers considering additional restrictions; Robinhood must navigate these challenges carefully to secure future growth opportunities.
See More
Analysis of Robinhood's Prediction Market Strategy
- Crypto Business Volatility: Robinhood's cryptocurrency trading revenue fell by 38% year-over-year in Q4 to $221 million, highlighting the unpredictable nature of this segment, which could adversely affect overall revenue stability.
- Growth Potential in Prediction Markets: The company is establishing Rothera, an independent derivatives exchange in partnership with Susquehanna International Group, expected to launch in mid-2026, with prediction markets becoming Robinhood's fastest-growing revenue segment, potentially offering a more reliable income source.
- Market Participation Opportunities: Robinhood enables users to speculate on outcomes across sports, politics, and culture, and with numerous major events occurring annually, scaling this business could lead to relatively stable growth.
- Regulatory Risk Considerations: Despite the significant potential of prediction markets, they face regulatory scrutiny, as some lawmakers are considering imposing additional restrictions; unfavorable regulatory conditions could pose substantial challenges for Robinhood's future development.
See More
Market Watch: Oil Price Surge and Stock Market Turmoil
- Oil Price Surge Impact: Following President Trump's address on the Iran war, which raised escalation concerns, U.S. crude benchmark WTI surged 9% to $109 a barrel, putting downward pressure on the stock market and negatively affecting investor sentiment.
- Bank of America Upgrades Vale: Bank of America upgraded Vale from hold to buy, suggesting that now is an attractive entry point for investors in the iron ore producer, despite Vale's stock dropping nearly 7% since the Iran conflict began, while iron ore prices have risen about 8%.
- Wix's Outlook Downgraded: UBS downgraded Wix from buy to hold, with analysts believing its 2026 outlook indicates a slowdown in core business growth from 12% last year to 8% this year, and despite efforts to integrate AI capabilities, the company remains vulnerable to disruption by AI.
- Cheniere Energy Price Target Increased: Citigroup raised Cheniere Energy's price target from $280 to $330 while reiterating its buy rating, as supply disruptions in the Middle East could benefit U.S. LNG exports long-term, with shares up about 17% since the war began.
See More
