Editing Robinhood Markets, Inc. (section)

== Market Opportunity: TAM, SAM & SOM ==
Understanding the scale of the opportunity is key to assessing Robinhood Markets, Inc.’s (Robinhood) long-term valuation. This section frames how the company’s platform shift (from a pure retail brokerage to a broader financial services offering) aligns with large market pools, what parts are reachable in the near-term, and what share Robinhood might realistically capture.

=== Market size estimates ===
{| class="wikitable"
! Segment !! Metric / Unit !! Estimated Value !! Source
|-
| Global personal financial wealth (TAM context) || Total personal financial wealth of households globally || ~$305 trillion (2024) || BCG Global Wealth Report 2025
|-
| Crypto market size (asset base) || Total global crypto market capitalisation || ~$3.7–$4.0 trillion (Oct 2025) || Yahoo Finance / State of Crypto reports
|-
| Global online brokerage / trading-platform revenue pool (TAM) || Annual revenue for e-brokerages & online trading platforms globally || ~$12–14 billion (2024–25 est) || The Business Research Company; GMInsights
|-
| Europe online trading platforms (SAM slice) || Annual revenue market in Europe for online trading platforms || ~$2.76 billion (2024) || Grand View Research (Europe)
|-
| Global crypto owners (SAM user pool) || Number of global crypto asset owners/users || ~560 million (2024) || TripleA Adoption Data
|}

=== Interpretation & Implications ===

The very large TAM (~$300+ trillion in global personal wealth) highlights the ceiling of what Robinhood could theoretically address through its platform expansion (trading + wealth + subscriptions + tokenised assets).

The SAM metrics illustrate more immediately reachable markets — e.g., ~2.8 billion USD in European trading-platform revenue, ~560 million global crypto users — markets where Robinhood is already active or expanding.

The SOM is the share Robinhood might realistically capture, given competition, regulation and execution risk. For example, even a 5-10% share of a ~$12-14 billion global e-brokerage revenue pool implies ~$0.6-1.4 billion of annualised revenue from that slice alone — before interest, subscriptions and crypto income.

From a valuation perspective, the size of these markets helps justify a premium growth multiple — but crucially, execution matters. A large TAM doesn’t guarantee share capture; regulatory shocks, competitive dynamics and execution missteps can limit the SOM and thus impair return potential.

In the context of your earlier Valuation & Recommendation section, this TAM/SAM/SOM framing reinforces the upside case — but it also underlines that the baseline assumption must be that Robinhood continues to deliver growth, monetisation and regulatory clearance.