Robinhood Gold seen as Amazon Prime of ebrokers - Mizuho

Investing.com -- Robinhood’s premium membership program, Robinhood (NASDAQ:HOOD) Gold, has been compared to Amazon (NASDAQ:AMZN) Prime as it rapidly expands and reshapes the online brokerage landscape, according to Mizuho analysts.

“We recently hosted Chris Koegel, VP Corporate Finance and IR at Robinhood,” Mizuho wrote. “Management is particularly excited about Robinhood Gold, which is inspired by Amazon Prime.” 

The firm notes that the subscription, priced at $5 per month, now boasts 3.3 million subscribers—up from around 1 million in mid-2023—and has reached a $200 million annual revenue run rate.

Mizuho said that Gold members show significantly higher engagement and value. 

“The average Gold customer has ~$40K AUM, multiples of that of the average customer,” Mizuho wrote. Additionally, Gold users are said to generate roughly five times the average revenue per user.

Among Gold’s key features are an AI-powered market analysis tool, a robo-advisor for portfolio creation, and a credit card with a 3% cash match on purchases. 

That card is said to already have 200,000 users and a 3 million-person waitlist. “Management sees a path to profitability” for the card, Mizuho added.

The firm highlights that Robinhood is targeting further growth through tiered crypto pricing aimed at high-volume traders, a potential $5 billion opportunity in crypto staking, and expansion into prediction markets via its partnership with Kalshi. 

Upcoming banking features, including checking and savings accounts, are expected by the third quarter.

Calling the Gold program “intentionally disruptively priced,” Mizuho highlighted a flat $250 annual fee cap regardless of portfolio size. 

They state that management remains focused on three strategic goals: winning active traders, growing wallet share among Millennials and Gen Z, and expanding internationally in markets such as the U.K., EU, Singapore, and Canada.