4. Robinhood Markets, Inc. (NASDAQ:HOOD)
Number of Hedge Fund Holders In Q1 2025: 76
Robinhood Markets, Inc. (NASDAQ:HOOD) is one of the more frequently discussed stocks on Cramer’s morning and evening shows. He believes that the firm’s software and trading platforms are far superior to any other offerings in the industry. The CNBC host also believes that Robinhood Markets, Inc. (NASDAQ:HOOD) is efficiently gaining market share among younger users and has captured the retail trading wave in America. His latest thoughts also mirror these sentiments:
“Look it’s been such a run, they’re doing, they have a really greay IRA up. They have a great IRA deal if you switch over. You know, you got Vlad Tenev, is sitting there thinking, how can I take away everybody under 30 from everyone of the firms. And all the rest of the firms are saying, well he won’t get us, he won’t take those away. They are watching the future evaporate.”
In his previous comments about Robinhood Markets, Inc. (NASDAQ:HOOD) Cramer discussed the firm’s business model in quite a bit of detail:
“If you include Robinhood Markets, we have three publicly trading platforms that are incredibly popular with younger people… Robinhood, that’s our returning champion… We introduced them first, to be honest, because I love their app… On a more subjective note, I think management’s really matured. When we spoke with [the] CEO of Vlad Tenev earlier this year, I was struck by how big he’s thinking. I wish more people in this industry thought as big as Vlad did…
So, how do these three brokerages, the platforms, stack up against each other? First, let’s take scale because scale is often what dictates what’s going to win in a brokerage area. At the end of the first quarter, Robinhood had 25.8 million funded customer accounts, 180 billion in assets under custody… Robinhood obviously is much bigger than the other two platforms… Now, what about the financials? We just want to look at revenue growth and some measures of profitability. But comparing the three companies… is surprisingly challenging because they all use different key metrics.
For Robinhood, we’re going to use the company’s total net revenues result… For Robinhood, we see really impressive numbers across the board. I mean, they’re doing so well… First thing you notice, Robinhood is head and shoulders above the rest in terms of both revenue growth and profitability…
Putting it all together, Robinhood remains the clear best of breed. What can I say?… So Robin and eToro are the only two I’d even consider. Robin has a better business… The truth is, as much as I like the overall Robinhood story and you know I do, I guess I get a little nervous about a stock that’s just run 192% and another 95% gain year to date. I mean, hold on, that’s too much…
Look, you know, I’m too tough on Robin. I think Robinhood is terrific. It’s just that… this stock price, it just doesn’t stop, and that gets me worried. But man, the company’s good. Here’s the bottom line: For the long term, I think Robinhood’s the safest way to play it, even as I prefer to wait for a pullback before pulling the trigger.”
