Robinhood shares trade near $97, about 35% below the all-time high of around $152 reached in late 2025, a bigger decline than Charles Schwab (about 15%) and Interactive Brokers (about 20%). The author argues the stock still looks expensive, with a price-to-earnings ratio of about 42x versus 16x for Schwab and 31x for Interactive Brokers, which makes value investors less likely to be interested. The company went public only in 2021 and has not been tested by a deep, prolonged downturn, while its customers, many new to investing, are using more margin (margin balances up 127% year over year in Q2 2026) and expanding into crypto and prediction markets. The author says the premium over peers could keep most investors on the sidelines until the company and its customers face a test on the scale of the Great Recession or the dot-com bubble.
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