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In this edition, we’re comparing Hyperliquid’s quarterly and year-to-date results with Robinhood’s. It’s a very short comparison, but it still raises important questions about whether the market is fairly valuing $HYPE.

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Let’s get into it.

Disclaimer: Views expressed are the author’s personal views and should not be relied upon as investment advice.

Discloser: We own $HYPE and are clearly biased.

$HOOD VS. $HYPE

Hyperliquid Q3 revenue/earnings:

• $289M with 99% used for buybacks

• 65% QoQ growth

• $1.15B in annualized earnings

• 110% growth YTD (quarterly results)

Robinhood Q3 Revenue:

• $1.27B in revenue

• 28.8% QoQ growth

• $5B in annualized revenue

• 37% growth YTD

Robinhood Q3 Earnings:

• $556M in earnings

• 44% QoQ growth

• $2.2B in annualized earnings

• 65% growth YTD

  

Both companies have executed well and delivered strong growth. However, Hyperliquid has been expanding at a faster pace YTD.

For Hyperliquid, revenue equals earnings, and earnings equal "dividends" since 99% of those funds are used for daily $HYPE buybacks.

Spoiler: faster growth doesn’t guarantee future outperformance. Valuations are based on future expectations.

Still, let’s look at the facts:

• Hyperliquid has been live for about a year.

• It already competes with Robinhood in terms of earnings.

• It has grown faster YTD (110% vs 65%).

• Every dollar earned is distributed to holders through buybacks.

• Hyperliquid is also an L1, which isn’t yet priced in.

Despite this, $HYPE trades at a P/E of around 11, while $HOOD trades above 50.

That either means the market expects Hyperliquid’s growth to slow significantly and lose market share, or it means the market is missing something.

There are valid reasons why $HYPE trades at lower multiples (covered on our website), but $HOOD trading at a 5x higher P/E ratio while growing slower and showing lower profit margins seems exaggerated.

All eyes now on Hyperliquid Strategies, likely launching by the end of the month.

Hyperliquid.

Hope you enjoyed reading this small analysis.

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