What Makes Robinhood Markets (HOOD) an Attractive Investment?

Parnassus Investments, an investment management company, released the “Parnassus Mid Cap Growth Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The Russell Midcap Growth Index fell 7.12% in the first quarter, starting with a continuation of the late 2024 rally but later experiencing a sharp decline. The Fund (Investor Shares) fell -9.98% (net of fees) in the quarter, compared to the Russell Midcap Growth Index’s -7.12% fall. Stock selection in Consumer Discretionary and Industrials contributed to the relative performance, while Communication Services and Health Care detracted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Parnassus Mid Cap Growth Fund highlighted stocks such as Robinhood Markets, Inc. (NASDAQ:HOOD). Robinhood Markets, Inc. (NASDAQ:HOOD) is a financial services platform that allows users to invest in stocks, exchange-traded funds (ETFs), American depository receipts, options, gold, and cryptocurrencies. The one-month return of Robinhood Markets, Inc. (NASDAQ:HOOD) was 20.97%, and its shares gained 260.56% of their value over the last 52 weeks. On July 2, 2025, Robinhood Markets, Inc. (NASDAQ:HOOD) stock closed at $97.98 per share, with a market capitalization of $83.014 billion.

Parnassus Mid Cap Growth Fund stated the following regarding Robinhood Markets, Inc. (NASDAQ:HOOD) in its Q1 2025 investor letter:

“Robinhood Markets, Inc. (NASDAQ:HOOD) is a fast-growing trading platform that allows ordinary investors to access trading at any time during the week. The company is expanding its product offerings and growing in international markets. We were able to invest in the stock after it retreated from recent highs.”

Robinhood Markets (HOOD) Soars 12.77% on Europe Token Launch

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Robinhood Markets, Inc. (NASDAQ:HOOD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 76 hedge fund portfolios held Robinhood Markets, Inc. (NASDAQ:HOOD) at the end of the first quarter, which was 79 in the previous quarter. While we acknowledge the potential of Robinhood Markets, Inc. (NASDAQ:HOOD) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Robinhood Markets, Inc. (NASDAQ:HOOD) and shared the list of high profit margin stocks to buy. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of MUSA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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