12 Best Booming Stocks to Invest in Now

4. Robinhood Markets, Inc. (NASDAQ:HOOD)

Number of Hedge Fund Holdings: 36

Year-to-Date Performance as of January 30: 42.24%

Robinhood Markets, Inc. (NASDAQ:HOOD) is a leading financial services company that has revolutionized the way individuals invest in the stock market and engage with digital assets. The company offers a wide range of financial products, including stocks, options, cryptocurrencies, and ETFs, making it a one-stop solution for retail investors.

One of the primary drivers of Robinhood Markets, Inc.’s (NASDAQ:HOOD) stock price increase in 2025 has been the anticipation of a more favorable regulatory environment under the Trump administration. Wall Street analysts such as Gautam Chhugani from Bernstein and Michael Cyprys from Morgan Stanley have highlighted the potential for clearer rules on digital asset classification, which could allow Robinhood Markets, Inc. (NASDAQ:HOOD) to expand its crypto offerings. This includes the ability to list more tokens and capture a larger share of the spot crypto trading market. The expectation of reduced regulatory constraints is particularly significant for Robinhood Markets, Inc. (NASDAQ:HOOD), as it has been constrained in its crypto business due to the current regulatory environment. The prospect of deregulation could unlock significant growth opportunities and increase investor confidence in the company’s long-term prospects.

Robinhood Markets, Inc. (NASDAQ:HOOD) is poised to open new crypto-focused revenue streams over the next 12 months, which could significantly enhance its business model. The company is exploring opportunities in staking, stablecoin lending, and other services typically offered by crypto exchanges. These new revenue streams could diversify Robinhood Markets, Inc.’s (NASDAQ:HOOD) income sources and reduce its reliance on traditional trading fees.