What Makes Robinhood Markets (HOOD) a Strong Investment?

2 days ago 3

Soumya Eswaran

Thu, November 13, 2025 astatine 8:22 AM CST 3 min read

Fred Alger Management, an concern absorption company, released its “Alger Mid Cap Growth Fund” third-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. The missive highlighted the marketplace outlook and top-performing and underperforming stocks. Equity markets continued their upward rally successful the 3rd quarter, with the S&P 500 Index up 8.12%. A confluence of improved economical conditions, beardown firm earnings, and anticipation of monetary easing drove the beardown show of the marketplace successful the quarter. The Class A shares of the money outperformed the Russell Midcap Growth Index successful the quarter. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its third-quarter 2025 capitalist letter, Alger Mid Cap Growth Fund highlighted stocks specified arsenic Robinhood Markets, Inc. (NASDAQ:HOOD). Robinhood Markets, Inc. (NASDAQ:HOOD) is simply a fiscal services level that allows users to put successful stocks, exchange-traded funds (ETFs), American depository receipts, options, gold, and cryptocurrencies. The one-month instrumentality of Robinhood Markets, Inc. (NASDAQ:HOOD) was 1.17%, and its shares gained 312.73% of their worth implicit the past 52 weeks. On November 12, 2025, Robinhood Markets, Inc. (NASDAQ:HOOD) banal closed astatine $132.98 per share, with a marketplace capitalization of $119.574 billion.

Alger Mid Cap Growth Fund stated the pursuing regarding Robinhood Markets, Inc. (NASDAQ:HOOD) successful its 3rd 4th 2025 capitalist letter:

"Robinhood Markets, Inc. (NASDAQ:HOOD) is simply a consumer-focused fiscal level offering commission-free trading successful stocks, options, futures and crypto, alongside status investing and subscription benefits via Robinhood Gold. In 2025 the institution besides broadened into wealthiness absorption with Robinhood Strategies (expert-managed portfolios), and announced Robinhood Banking and Robinhood Cortex arsenic portion of a wider propulsion to present advisory, banking and AI-driven tools wrong the app. With implicit 25 cardinal accounts, Robinhood holds astir 15–20% marketplace stock among brokerage accounts, but lone astir 0.3% of the $70 trillion successful U.S. household investable assets, according to management. Shares contributed positively to comparative show during the play aft the institution reported beardown operating results, with revenues and net beating expert estimates."

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Robinhood Markets, Inc. (NASDAQ:HOOD) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 85 hedge money portfolios held Robinhood Markets, Inc. (NASDAQ:HOOD) astatine the extremity of the 2nd quarter, compared to 76 successful the erstwhile quarter. Robinhood Markets, Inc. (NASDAQ: HOOD) reported revenues of $1.3 cardinal successful Q3 2025, indicating implicit 100% year-over-year growth. While we admit the imaginable of Robinhood Markets, Inc. (NASDAQ:HOOD) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.