OK, let's just be super conservative and say only 50% of Robinhood's accounts are funded. So they are valued at 3,500 per funded account. Let's assume you're right and that ETrade's accounts are all funded. So they would be valued at 3,081 per funded account.
Would you pay 13.5% more per account for a company that's growing at least 5x, if not 10x as fast? I know I would in a heartbeat, all else being equal.
Now, not all else is equal, so you can make an argument either way, but I wouldn't call Robinhood's valuation "insane."
Would you pay 13.5% more per account for a company that's growing at least 5x, if not 10x as fast? I know I would in a heartbeat, all else being equal.
Now, not all else is equal, so you can make an argument either way, but I wouldn't call Robinhood's valuation "insane."