Futu Holdings Limited (FUTU): A Bull Case Theory

We came across a bullish thesis on Futu Holdings Limited on r/Valueinvesting by Glad-River7299. In this article, we will summarize the bulls’ thesis on FUTU. Futu Holdings Limited’s share was trading at $184.08 as of January 13th. FUTU’s trailing and forward P/E were 20.62 and 11.99 respectively according to Yahoo Finance.

FUTU Holdings is highlighted as an under-the-radar brokerage platform competing with Robinhood while offering differentiated exposure to fast-growing Asian and international retail investing markets. Headquartered in Hong Kong, the company operates through Futubull, which primarily serves Hong Kong and mainland China, and Moomoo, which targets global markets.

This dual-platform structure provides access to regions where retail participation continues to expand and remains structurally underpenetrated relative to the U.S. Financial performance has been strong, with revenue nearly doubling from $7.12 billion in 2021 to $13.6 billion in 2024, while net margins have remained around 40%, underscoring the scalability and operating leverage of the business model.

Despite this growth profile, FUTU trades at approximately 18.5x earnings, which appears attractive given that earnings have compounded at roughly 30% over the past two years. The stock price has already appreciated 91% over the last year and currently trades near $165, down from a recent high of $199, suggesting the shares may still be 20% to 30% undervalued based on forward growth expectations.

User and asset growth continue to accelerate, with total brokerage accounts reaching 5.61 million as of Q3 2025, representing 31% year-over-year growth, while total client assets increased 79% year over year to approximately $158 billion. International adoption has been particularly strong, with Moomoo surpassing 1.5 million users in Singapore, growing more than 50% in 15 months, exceeding 1 million users in Malaysia after growing tenfold in just over a year, and ranking as the most downloaded trading app in Australia and New Zealand by the end of Q3 2025.

Overall, FUTU combines high profitability, rapid global user growth, and exposure to structurally attractive markets, supporting a compelling long-term investment case.

Previously, we covered a bullish thesis on Robinhood Markets, Inc. by Chit Chat Stocks in May 2025, which highlighted the company’s large under monetized user base and strong asset growth, driving long term ARPU expansion. HOOD’s stock price has appreciated by approximately 84.58% since our coverage. This is because the thesis played out as user engagement and monetization improved. Glad-River7299 shares a similar thesis but emphasizes geographic diversification and higher margins at FUTU.

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Disclosure: None.