Robinhood's growing non-crypto businesses make its trading-app valuation look too low. Gold subscribers rose 34% to 5.2 million, platform assets reached $396 billion, and 14 business lines now each generate over $100 million annually. Overweight with a $115 target, despite a weak report: deposits fell to $15.7 billion from $22 billion and net interest income dropped 9% as rates declined. x.com  x.com 

Robinhood's growing revenue lines make the business more scalable as users and Gold subscriptions expand. Its Q3 slide shows 14 lines at or above $100M in annualized revenue, up from 11 in 2025. Funded customers reached 28.7M (+7% YoY), Gold subscribers 5.2M (+34%) and revenue per user $200 (+5%). The results were not mind-blowing: $1.424B revenue slightly missed estimates, while adjusted EPS of $0.60 beat. Last year's rapid growth is not sustainable. x.com  x.com  x.com 

Interactive Brokers is expensive against its earnings. At $89.98 it trades at 36x earnings and 28x next year's, while brokerages usually get 12x. At 12x next year's estimated $3.20 a share, give or take 12%, fair value is $33.75-$42.96, so buyers are paying about 109% above fair. This is a valuation read only, not fundamental work. x.com 

Robinhood's growth looks more reliant on wallet share and the market backdrop because customer and active-user growth are weak. Revenue rose 12%, accounts 7% year over year, and net new funded accounts slowed one quarter after acquisition was re-prioritized; adjusted EPS growth unexpectedly turned negative. New customers grew at a mid-single-digit rate and monthly active users fell. MAU is volatile, but needs to improve next quarter. x.com  x.com  x.com  x.com 

Interactive Brokers is a fantastic business because it is basically a tech company. Its fully automated platform keeps costs low, supporting operating margins above 70% and the industry's lowest fees, and one account can trade almost anything in over 150 markets, a scale no rival matches. Its software is too complex for beginners, leaving the mass market to competitors like Robinhood, and complex international regulation is costly. It is a powerful cash machine with a great moat. x.com 

Interactive Brokers will face crypto competition at the core of its trading-oriented business sooner than Robinhood will. Crypto is better at trading, as Hyperliquid shows, than at products such as crypto cards, so it should hit IBKR's trading franchise before it seriously challenges Robinhood's product-oriented business. x.com 

Interactive Brokers' 31% account growth is no one-quarter phenomenon, because retail trading is increasingly international and less US-centric. With under 5 million accounts versus Robinhood's roughly 27 million, it could add 3 million in a year or even beat Robinhood's 10 million in 2021, as traders now accept less user-friendly platforms, as Polymarket shows. Its valuation is no longer anomalous versus peers, but modest multiple expansion and a few more such quarters point to roughly 2x. x.com 

Robinhood's growing prediction markets, options and Gold subscriptions make the $90s one of the most exciting times to buy. Q3 event-contract revenue reached $173 million, up over sixfold, options rose 31% to $399 million, and Gold subscribers reached a record 5.2 million. Crypto revenue fell 55% year over year to $120 million, and Dr. Crossroads reported misses on revenue and EPS; Robinhood remains a great buy as its international reach and banking services expand. x.com  x.com  x.com 

Robinhood, Interactive Brokers and Coinbase face prediction-market regulation in the near future, which would hurt their margins, revenue and profits. x.com 

Robinhood's higher revenue and EPS make it clearly stronger than SoFi on these earnings. SoFi's post-earnings rally is unlikely to hold; its shares are headed for single digits. x.com  x.com