12 Stocks to Buy with Exponential Growth in 2025

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

Average Upside Potential: ~78.3%

Number of Hedge Fund Holders: 79

Robinhood Markets, Inc. (NASDAQ:HOOD) operates a financial services platform in the US. Deutsche Bank analyst Brian Bedell believes that the company is a good buying opportunity, and has maintained a “Buy” rating on the stock. Robinhood Markets, Inc. (NASDAQ:HOOD) continues to demonstrate encouraging growth and resilience, mainly in its trading volumes and new product offerings. As per the analyst, the company has been witnessing robust trading momentum, mainly in equities and options. The crypto notional volumes rose over 400% YoY, touching $71 billion in Q4 2024. The company’s newer products, which include futures trading, have been picking up steam faster than anticipated.

Elsewhere, BofA Securities remains optimistic about Robinhood Markets, Inc. (NASDAQ:HOOD)’s stock, maintaining a “Buy” rating and a price objective of $65.00. The firm’s analyst noted the platform’s higher retail engagement and strong organic growth. The company possesses strong growth potential in the self-directed retail as well as cryptocurrency sectors globally. Furthermore, an expanded cryptocurrency offering is expected, enhancing Robinhood Markets, Inc. (NASDAQ:HOOD)’s appeal to crypto traders and investors.

Artisan Partners, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“During the quarter, we initiated new GardenSM positions in US Foods, Pure Storage and Robinhood Markets, Inc. (NASDAQ:HOOD). Robinhood has emerged as the go-to-trading platform for millennials, boasting approximately 25 million accounts (versus Charles Schwab’s 34 million). The company’s user base skews younger, with deposits growing significantly faster than the broader industry due to several drivers, including the rise of self-directed trading, the generational wealth transfer to millennials and increasing market share. As Robinhood’s customer base matures and accumulates wealth, we believe the company is well positioned to expand its product offerings to meet evolving financial needs. Furthermore, management’s focus on profitable growth and a 90% fixed cost structure suggests meaningful margin expansion potential.”