We recently published a list of Jim Cramer Talked About These 8 Stocks. In this article, we are going to take a look at where Robinhood Markets, Inc. (NASDAQ:HOOD) stands against other stocks that Jim Cramer discusses.
On Friday, Jim Cramer, the host of Mad Money, expressed concern over President Donald Trump’s focus on the long-term benefits of tariffs as he argued that the short-term consequences are far more severe.
“The president is fixated on the long term when he talks about trillions of dollars that the tariffs will bring in. He says the tariffs will allow us to fund both tax cuts and a lower budget deficit. Putting aside whether that’s going to be true or not, I don’t think we have the full luxury right now of focusing on the potential long-term benefits because the short-term is a horror show.”
READ ALSO Jim Cramer’s Game Plan: 10 Stocks in Focus and 10 Stocks on Jim Cramer’s Radar Recently
Cramer highlighted that the tariffs are excessive and poorly executed and also lack the reciprocal nature needed for a fair trade policy. He noted that it has triggered unnecessary chaos in the markets. He further criticized the stock market’s current state and noted that it is far from functioning properly. He pointed to the struggles of private equity firms, whose stock values are plummeting.
Cramer mentioned that these companies, which hold a significant number of highly levered businesses, had been planning to bring them public under Trump’s administration. However, he said that due to the current market turmoil, there are growing concerns that these initial public offerings might be canceled altogether. He added:
“If we want to get out of this mess, we need some signs that the president understands the need for a functioning market.”
Cramer also stressed that while the U.S. may be experiencing low unemployment, it might not last if short-term issues are not addressed. He commented that the public does not elect their leaders to look only toward long-term outcomes but also to manage immediate challenges. Cramer urged Trump to adjust his approach and form better trade relationships with countries that are open to trade negotiations.
“The President needs to make a commitment… to help companies that want to avoid the tariffs. He needs to call world leaders and say that they can roll back some of the tariffs that he’s putting on them, but, they gotta play ball. Mr. President, don’t cause a crash. It will be your legacy and it can easily be avoided.”
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 4. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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Robinhood Markets, Inc. (NASDAQ:HOOD)
Number of Hedge Fund Holders: 79
A caller asked Cramer’s thoughts on Robinhood Markets, Inc. (NASDAQ:HOOD) during the episode, and in reply, he said:
“Okay, I like Robinhood very much, but the problem is that when it had this big spike where things looked like we’re going to have a president… that was a little more pro markets, I would own the stock. I would not buy it right here. I think the stock has another 15 to 20% downside before we really find exactly where it can be bottoming.”
Robinhood (NASDAQ:HOOD) provides a platform for financial services for users to invest in assets like stocks, ETFs, options, and cryptocurrencies. The platform offers features like fractional trading, margin investing, and educational resources. It also gives access to tools such as 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.”
Overall, HOOD ranks 2nd on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than HOOD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
