Cathie Wood’s Stock Portfolio: 2025 Stock Picks

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

ARK Investment Management’s Q3 Stake Value: $420.9 million

Number of Hedge Fund Holders: 36

Robinhood Markets, Inc. (NASDAQ:HOOD) is a California-based financial services company that uses a mobile app to provide commission-free trading of stocks, exchange-traded funds, and cryptocurrencies, as well as administration of individual retirement plans.

KeyBanc Capital Markets increased its price target for Robinhood Markets, Inc. (NASDAQ:HOOD) shares from $50 to $57 while maintaining an Overweight rating on January 30. Alex Markgraff, a KeyBanc analyst, acknowledged that the company’s Gold Card is in high demand and that its Gold membership plan is gaining popularity. The study, which included questions about the company’s future goals, revealed an unexpected interest in futures trading, which is set to begin in 2025. Despite the hopeful outlook, the poll findings showed a modest decrease in the desire to create retirement savings accounts.

Robinhood Markets, Inc. (NASDAQ:HOOD) had another excellent quarter in fiscal Q3 2024, recording its second-highest revenues to date. Adjusted EBITDA increased by 96% over the previous year, while total revenues grew by 36%.

ClearBridge Growth Strategy stated the following regarding Robinhood Markets, Inc. (NASDAQ:HOOD) in its Q4 2024 investor letter:

“Additionally, we purchased Robinhood Markets, Inc. (NASDAQ:HOOD), an established disruptor in retail brokerage with a brand that resonates across younger cohorts. The company ushered in the era of commission-free trading by leveraging payment for order flow from market makers and also generates revenue from cryptocurrency transactions. While currently maintaining only about 1% market share of self-directed assets, Robinhood is taking share in a large, secularly growing industry. Robinhood should significantly benefit from the upcoming change in administration with reduced regulatory risk around payment-for-order flow and the potential for policies supportive of cryptocurrency to create a runway for new growth opportunities.”