SCHW Reddit Mentions | ChartExchange

\- Far lower than healthy average account value. 25.8 Million "funded" accounts. $180B assets under custody and a market cap of $83B. That puts the average account value at less than $7,000. Nobody is fighting to take RH's customers, and that market cap represents a much higher multiplier than the rest of the sector.
(As points of comparison: Schwab's average account value is over $200k (47.6 million accounts, $9.91T under custody, market cap of $166B). Interactive brokers is over 150k (3.62MM accounts, $573.5B assets, market cap of $98B))

ETrade was about $70k per account when it was sold to MS at a firesale price of $13B. TD Ameritrade was around $108k per account when sold to Schwab for $26B. Neither of those companies were "healthy", but both were putting up better numbers than Robinhood is today.
\- In the financial industry, Vlad is not seen as a serious leader running a serious business. This may not be fair, but it's the perception.
\- RH's customers are not sophisticated investors (see also: $7k average account value), and very few of them have been involved in a bear market. When the current market turns or corrects, they are going to get hit a lot harder than most other brokers' customers, and will be much more likely to close their accounts.
\- RH does have a substantial GenZ and Millennial presence, but not among the folks who are most likely to become HNW or UHNW in the next 15-20 years (the young folks of means have their money elsewhere). The long-term value of these customers is questionable. RH will make more profit by encouraging more active trading, but there's no path to the (ultra-profitable) wealth management or trust management businesses.
With that said, HOOD does trade more like a tech stock or meme stock than as a financial services company (and $120 is not out of the question, but probably not sustainable), but compared to the rest of its industry, it is already overvalued.
I'm not buying, but I'm not shorting either.
(Disclosure: I have no position in HOOD, though I do in MS and SCHW.)