Jim Cramer Thinks Robinhood’s (HOOD) Layoffs Are Due To AI

We recently published Jim Cramer Discussed Expensive Phones, A Cheap Stock Sector & These 18 Stocks. Robinhood Markets, Inc. (NASDAQ:HOOD) is one of the stocks discussed by Jim Cramer.

Financial trading platform Robinhood Markets, Inc. (NASDAQ:HOOD) is another top Jim Cramer stock. Throughout 2025, the CNBC TV host continued to praise the firm as he commended its technology and the facilitation of wealth transfer across generations of Americans. Robinhood Markets, Inc. (NASDAQ:HOOD)’s shares are up by 37% over the past year and are down by 6% year-to-date. Deutsche Bank discussed the firm on June 17th. It raised the share price target to $105 from $103 and kept a Buy rating. The coverage came after Robinhood Markets, Inc. (NASDAQ:HOOD) announced that it would cut its workforce by 10%, as the bank believes that the decision came from a position of strength. Cramer, it appears, holds a similar opinion:

“It’s funny, Vlad, whom we all know, Vlad Tenev, not viewed skeptically when he said this, and there’s a lot of people who say, hold it, if you’re laying off that many people, something might be wrong.They’re not questioning Vlad like that. Now the stock [inaudible] earlier. But I think that that’s because Vlad uniquely does have, a model based highly on technology, and as you scale it, you find new ways to save money. I believe him, as opposed to other deals, where it seems like wait a second they’re really not doing that well. Robinhood’s doing great. . .yeah I think this is AI. . .”

Jim Cramer Thinks Robinhood's (HOOD) Layoffs Are Due To AI

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 the cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. 

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