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Is Robinhood Markets (HOOD) the Best Stock from Cathie Wood’s Portfolio to Buy Now?

Robinhood Markets Inc. (NASDAQ:HOOD) is among the top 10 stocks to buy from Cathie Wood’s stock portfolio. ARK Investment Management substantially reduced its Robinhood position in Q3, decreasing its share count by nearly 36% to 5.02 million from 7.79 million. By quarter-end, the stake represented around 4.3% of ARK’s 13F portfolio and was valued at approximately $718 million.

On November 25, Robinhood Markets Inc. (NASDAQ:HOOD) announced its plans to launch a new futures and derivatives exchange and clearinghouse. This move is expected to expand its presence in prediction markets and support long-term positioning. Management noted that its prediction markets revenue growth has accelerated meaningfully recently, with more than 9 billion contracts traded by over 1 million users in the first year of launch.

The exchange will operate through a joint venture led by Robinhood Markets as the controlling partner. Another key partner will be Susquehanna International Group, which will be a day-one liquidity provider. To accelerate regulatory readiness, the venture will acquire MIAXdx, a CFTC-licensed Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO). MIAXdx is a wholly owned subsidiary of Miami International Holdings Inc. (NYSE:MIAX), which will retain a 10% strategic stake in the exchange under the terms of the deal.

The JV’s operations are expected to begin in 2026 and position Robinhood for deeper participation in the rapidly expanding derivatives and prediction markets.

Earlier, on November 17, Gautam Chhugani, an analyst at Bernstein, had reaffirmed a Buy rating on Robinhood with an unchanged price target of $160. Overall, the consensus remains a strong Buy on the stock, with a 1-year median price target of $155, representing a further 34% upside.

Robinhood Markets Inc. (NASDAQ:HOOD) is a U.S.-based retail brokerage and trading platform that enables individual investors to trade stocks, options, futures, and cryptocurrencies, mainly through a zero-commission model.

While we acknowledge the risk and potential of HOOD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HOOD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Most Fantastic Stocks Every Investor Should Pay Attention To and 10 Hottest Smid-Cap Stocks So Far In 2025.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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