7 Stocks on Jim Cramer’s Radar

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

Number of Hedge Fund Holders: 79

Highlighting the stock’s 30% decline from its highs, a caller asked if they should continue holding Robinhood Markets, Inc. (NASDAQ:HOOD) or not. Here’s what Cramer had to say:

“No, you should be buying more Robinhood. I think that Vlad Tenev has totally gotten it together. I think that he is smoking the rest of the industry. I like his new predictions thing he just started. You’ve got a winner. Get bigger.”

Robinhood (NASDAQ:HOOD) offers a financial services platform that allows users to invest in various assets, including stocks, ETFs, options, and cryptocurrencies. It provides features such as fractional trading, margin investing, educational resources, and access to tools like credit cards, spending accounts, and wallets. Artisan Partners stated the following regarding Robinhood Markets, Inc. (NASDAQ:HOOD) in its Q4 2024 investor letter:

“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.”