ROBINHOOD Stock ( HOOD Stock Has Now More Than Doubled In price since IPO ) Here's Why

#HOOD #amc #gme

In IPO news, Robinhood Markets (HOOD) soared more than 50% to a new high, extending Monday's 24% gain. The startup priced 55 million shares July 28 at $38 a share, raising $2.1 billion. But the pricing came in at the low end of its expected range. week after hitting the public marketplace, Robinhood Markets Inc (NASDAQ:HOOD) is surging to new all-time highs Wednesday.

Robinhood's valuation is starting to look expensive, Hightower Advisors' Stephanie Link said on CNBC's "Squawk Box."

This is a payment-for-order flow story with crypto being a "kicker" for the company, Link said.

Robinhood's revenues grew 5% to 10% in the second quarter, while payments for order flow declined 23%, she said, adding that such data shows that payment for order flow is very competitive and Robinhood's crypto market share is probably increasing.

Even with the crypto growth, the stock is "super expensive" at 11 times price-to-sales, Link said. To put that in perspective, Charles Schwab Corp (NYSE:SCHW) is trading at seven times price-to-sales and the company is much more diversified, she added.
Robinhood founders have 67% voting interest, which Link noted is a "yellow flag."

Robinhood is by far the most mentioned stock on the subreddit r/WallStreetBets over the last 24 hours.

Robinhood's spiked 52% shortly after the opening bell, trading around $71.35.