Is Robinhood Stock a Millionaire Maker?

Robinhood Markets (NASDAQ: HOOD) is a market darling at the moment. That's highlighted by the huge 240% stock price advance over the past year, besting the S&P 500 index (SNPINDEX: ^GSPC) by more than 220 percentage points. That's a shocking advance, and it has pushed the stock's valuation to worrying levels. Here's why investors hoping to buy Robinhood and ride it to millionaire riches should probably tread with caution.Charles Schwab is one of the oldest and most respected discount brokers, having effectively helped create the industry in which it now competes. The stock's price-to-earnings (P/E) ratio is 22. Interactive Brokers (NASDAQ: IBKR) is a large, digitally native discount broker that is a highly respected company. It has a P/E ratio of 32. Robinhood is a relatively young competitor in the discount broker space that has yet to experience a bear market as a public company. Its P/E ratio is a lofty 57.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool