Is Robinhood Overvalued?

I'm starting to think Robinhood may be getting over their skis.

For instance, at a Market Cap of $115B, Robinhood is closing in on almost half the valuation of Morgan Stanley ($269B) or Goldman Sachs ($247B)...

...but have almost 1/10th the profit.

Goldman Sachs net income:

Morgan Stanley:

Robinhood:

Why did they run up so much?
In short, the answer is Prediction Markets (which if you checkout my thesis (video below)... I saw exactly this coming in April, when almost no one was talking about it).

Robinhood also announced recently a futures and derivatives exchange in collaboration with Susquehanna International Group.

In this deal, Robinhood will serve as the controlling partner and Susquehanna was brought on as a day-one liquidity provider. At it's core, the initiative is to expand Robinhood's range of prediction contracts.

Are Prediction Markets here to stay?
The next logical question is whether or not prediction markets are here to stay. New York is considering a bill that would regulate some event trading like gambling. Massachusetts is taking Kalshi to court.

There isn't pushback at the Federal level for right now, but if enough "invetors" lose money conflating gambling for investing, I could see pushback.

Robinhood has said they see a TAM for their business of $400B, implying their business could have another 4x to go. I wish I had >100 shares of Robinhood because I would begin writing covered calls.

For now, I'll hold. But I'm eyeing an exit. This is very unusual for me as I think it would be the first time I've ever paid short term capital gains.