To The Moon

I Bought HOOD Around $95 During the Pullback. Here’s Why I Made the Move

I finally started putting some money to work during this pullback.

While some investors are waiting for another leg down, I decided to take a position in Robinhood $Robinhood(HOOD)$  around $95. Was it the exact bottom? Probably not something anyone can know in real time. But I did not buy simply because the share price had fallen. I bought because I believe the business still has room to grow, and the pullback gave me an entry point I was more comfortable with.

For me, the goal is not to catch the lowest price on the chart. It is to find a business whose future potential justifies the price I am paying.

Why HOOD caught my attention

Robinhood is no longer just a platform where retail investors trade stocks. Its business has been expanding across options, cryptocurrency, retirement accounts, subscription services and other financial products.

What interests me is whether it can turn its growing customer base into a more diversified and durable revenue stream, rather than depending too heavily on periods when markets are unusually active.

Its Q2 2026 results provided some encouraging evidence. Revenue reached $1.31 billion, up 32% year over year, while net deposits reached a record $21.7 billion. Robinhood Gold subscribers also increased to 4.8 million, up 39% year over year.

Those figures suggest that the platform is still growing and attracting assets. I find that more meaningful than a share price rebound alone.

However, I would not treat one strong quarter as proof that growth will continue at the same pace. A portion of reported earnings also benefited from gains primarily related to the deconsolidation of Robinhood Ventures Fund I. I would rather assess the underlying operating performance than rely on headline earnings growth.

Why I was comfortable buying around $95

My decision came down to three things.

First, I believe the business has multiple growth drivers. Trading activity can fluctuate, but Robinhood has been expanding its product offering and trying to deepen its relationship with customers. If these initiatives continue to gain traction, they could make the business less dependent on any single revenue source.

Second, I wanted a better entry point. HOOD is a growth stock, and growth stocks can be punished quickly when investors become less willing to pay premium valuations. Buying at a lower price improves the potential return only if the business continues to deliver. A decline by itself does not make a stock cheap.

Third, I was prepared for further volatility. A position opened around $95 can still fall below that level. I am not assuming that the market has bottomed or that the stock must recover immediately. My decision is based on the longer-term business opportunity, not the expectation of a quick bounce.

That distinction is important. If I buy a stock only because I expect it to rise next week, I am making a very different investment from one based on a multi-year business thesis.

What could go wrong?

HOOD is not a risk-free compounder.

Its results can be affected by trading volumes, cryptocurrency prices, customer activity and broader market sentiment. If retail participation weakens, some revenue streams could slow. Competition is another consideration, while continued product expansion requires execution.

Valuation is also important. Even a fast-growing business can deliver disappointing investment returns if investors pay too much upfront. A strong company and an attractive stock price are not always the same thing.

I will be watching its upcoming Q3 results and management commentary closely, especially for evidence that customer growth, recurring revenue streams and profitability can support expectations. I would also reassess my thesis if the underlying business deteriorates, rather than automatically buying more every time the share price falls.

What about other high-conviction stocks?

I do not think every stock deserves to be bought just because the market is red.

For other opportunities on my watchlist, I would prioritise businesses with strong competitive positions, credible earnings growth, healthy cash generation and balance sheets that can withstand a difficult market. I would then compare their current valuations with their growth prospects.

I also prefer keeping some flexibility instead of using all my available cash on the first dip. If the market falls further, having reserves gives me the option to act. If it rebounds, I may not get the lowest possible entry price, but I would rather accept that trade-off than feel pressured to make every purchase at once.

The right allocation also depends on the risk already sitting in the portfolio. Owning several different technology stocks does not necessarily mean being diversified if all of them depend on the same investment cycle.

Did we catch the bottom?

I have no idea, and I do not think we need to know.

I bought HOOD around $95 because I saw an opportunity at that price, not because I could predict what the market would do next. If the share price falls further, I will focus on whether the original thesis still holds. If it recovers, I will judge the decision by the business performance and the return over time, not by whether I bought at the absolute low.

For me, a pullback is useful when it gives investors a chance to revisit valuations and become more selective. It is not a signal to buy everything indiscriminately.

My takeaway: I would rather buy with a clear thesis and accept that I may not get the bottom than wait forever for a perfect entry that may never come.

What about you? Did you buy anything during this pullback, or are you keeping cash ready for another opportunity? I am particularly interested in which businesses you have the highest conviction in — and what would make you change your mind about them.

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