Jim Cramer Said Robinhood Markets (NASDAQ:HOOD) Just Keeps On Growing
Ramish CheemaSat, September 12, 2026 at 2:21 PM GMT+3 3 min read
Financial markets platform Robinhood Markets (NASDAQ:HOOD) is one of Cramer's favorite stocks. Over the course of the past year, the CNBC TV host has consistently praised the firm for the technological strength of its platform and its role in facilitating the wealth transfer between generations. In his morning appearance on September 3rd, Cramer kept up with the praise:
"There has been a stock that throughout this period has really held up very well. Congratulations, Vlad Tenev. It's Robinhood Markets. And I have to tell you Carl, the younger people, a lot of them are a little too crypto oriented. Maybe too option oriented. But younger people are owning stocks. And Robinhood keeps growing and growing. . .and they're growing with this great 21 to 30 cohort. I wish those people spent a little more time watching some of the things we talk about. A little more educated, a little less more day trading."
Robinhood Markets (NASDAQ:HOOD)'s shares are down by 4.4% over the past year and by 2.3% year-to-date. However, over the past month, the stock is up by 18.6%. On the day Cramer praised the firm, the shares closed 16.6% higher. Since Robinhood Markets (NASDAQ:HOOD) is primarily a trading platform, the debate for the firm surrounds whether its business expansion can overcome the inherent cyclicality the stock is exposed to due to its market.
On the diversification front, the firm has expanded its business by targeting blockchain networks, prediction markets and high yield asset management programs. The blockchain initiative is called Robinhood Chain and reports suggest that it has suggested that it has generated $42 million in revenue 70 days after launch. The platform adds high margin revenue for Robinhood Markets (NASDAQ:HOOD). In the second quarter, the high yield management initiative called Robinhood Gold saw subscribers jump by 39% annualy to 4.8 million. Overall, the firm's 'Other Revenues' business grew by 54% annually to post $143 million in revenue.
Yet, apart from diversifying the business, initiatives such as Robinhood Gold might be necessary to help Robinhood Markets (NASDAQ:HOOD) navigate the cryptocurrency downturn. During the second quarter, the firm's cryptocurrency revenue dropped by 38% annually to $100 million, while crypto trading volume also dropped by 38% to sit at $17.5 billion in August. Consequently, the debate is whether the new businesses can help Robinhood Markets (NASDAQ:HOOD) maintain its growth path as it struggles in some markets.
The stock currently trades at a forward P/E ratio of 41.49 which is higher than neer peer Interactive Broker Group's 27.55. As for the hedge funds, 87 funds had held a stake in Q2, which marked a slight increase over the 84 in Q1, according to Insider Monkey's data. A notable new stake came from Jericho Capital Asset Management, as it was worth $484 million.
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Disclosure: None.
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