8. Robinhood Markets Inc (NASDAQ:HOOD)
ARK’s Stake Value: $543.6 Million
Robinhood Markets Inc (NASDAQ:HOOD) accounts for about 3.6% of the overall portfolio of Cathie Wood, as ARK owns a $543.6 million stake in the trading platform company. Robinhood Markets Inc (NASDAQ:HOOD) saw an increase in hedge fund sentiment as 83 funds reported owning shares in the company at the end of the December quarter, up from 77 funds in the previous quarter.
Over the past year, Robinhood Markets Inc (NASDAQ:HOOD) shares are up 110%. Can the stock keep growing and is it really one of the best stocks to buy for 2026?
Robinhood Markets Inc (NASDAQ:HOOD) has become one of the favorite trading platforms of young investors who are looking to directly invest in stocks, crypto and other asset classes. The explosive growth in interest from the younger audience Robinhood Markets Inc (NASDAQ:HOOD) saw during the pandemic days is ongoing. The number of funded accounts on the platform has grown from about 12 million in 2020 to 27 million as of last year. Robinhood Markets Inc (NASDAQ:HOOD) shares wavered last month after it missed revenue estimates for Q4 amid crypto weakness. However, it plans to expand across several products like options trading, stocks and prediction markets.
Robinhood CEO Vlad Tenev talked about how Robinhood Markets Inc (NASDAQ:HOOD) is expanding beyond crypto. It has plans for tokenized stocks and other on-chain financial services to let users trade digital versions of real assets on its own blockchain. Tenev said the company has 11 business lines generating $100 million or more in annual revenue.
Gator Capital Management stated the following regarding Robinhood Markets, Inc. (NASDAQ:HOOD) in its fourth quarter 2025 investor letter:
“During 2025, we had strong performance and outperformed both the broader market and the Financials sector benchmark. The two major drivers were our positions in Robinhood Markets, Inc. (NASDAQ:HOOD) and Anywhere Real Estate.
We entered 2025 with Robinhood as our largest position after it had a strong 2024. The stock had another strong year as the company continued to introduce new products, which drove accelerating growth. We hedged the position throughout the year as the valuation increased and currently have minimal exposure to the stock. One factor in hedging the position is that we are uncomfortable with the regulatory stability of prediction markets. We believe prediction markets have allowed people in non sports gambling states and people 18-20 years old to gamble on sports through their brokerage accounts because prediction markets are considered exchanges and not casinos.”
