We recently published a list of Jim Cramer Is Talking About These 10 Stocks Heading Into December. In this article, we are going to take a look at where Robinhood Markets Inc (NASDAQ:HOOD) stands against other stocks Jim Cramer is talking about as heading into December.
Jim Cramer in a recent program talked about President-elect Donald Trump’s Treasury pick and highlighted his enthusiasm for the stock market.
“On the other hand, President Trump was all about Nielsen ratings when he was on The Apprentice, and as president, he repeatedly said, The Dow Jones Industrial Average all-time high, and the S&P 500 were his new Nielsen ratings. He likes being rated, he likes to win, and he wants that stock market to go up to ratify his performance. That’s a big reason why the market exploded higher when he won.”
Cramer also discussed Trump’s Treasury pick Scott Bessent’s possible 3-3-3 plan that calls for bringing the budget deficit down to 3% of GDP, 3% growth and producing 3 million barrels of oil per day.
Jim Cramer said he is skeptical about Elon Musk’s efficiency plans in the upcoming Trump administration.
“Can there be a legitimate top-to-bottom change in the efficiency of our government and its associated costs? Count me as a skeptic about any attempt to change the government, including Elon Musk and Vivek Ramaswamy’s Doge thing, because every penny of spending in the budget has a constituency. When you add all those proposed cutbacks together, you face tremendous opposition. But that’s not the point. What matters is that this Treasury Secretary-designate is a serious person.”
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For this article we watched several latest programs of Jim Cramer and picked 10 stocks he is talking about. With each stock we have mentioned its hedge fund sentiment. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Robinhood Markets Inc (NASDAQ:HOOD)
Number of Hedge Fund Investors: 36
Jim Cramer in a Mad Dash episode on CNBC sounded bullish on Robinhood Markets Inc (NASDAQ:HOOD) because of the company’s success in attracting younger Americans who are interested in investing:
“This is the king, okay? These guys have the next generation. The other guys have the people who watch fire shows and hospital shows and detective shows. These guys have the young; they watch TikTok, they watch YouTube, and they watch their handhelds and trade crypto.”
Can HOOD shares go higher in the future?
In the latest earnings call with analysts, Robinhood’s CFO, Jason Warnick, highlighted the company’s significant growth in recent quarters, which has pushed it to an all-time high of 2.2 million Robinhood Gold subscribers. This growth, he noted, is part of Robinhood’s unique approach. Few other brokers manage to charge a subscription fee for using their platform. Robinhood Gold plays a crucial role in monetizing the company’s user base, but it’s only one aspect of its broader strategy.
“And one of the most exciting new parts of the Gold program is our Robinhood Gold card. When I’ve talked to Robinhood customers in recent months, the Gold card almost always comes up. If someone has it, they love it. If they don’t have it, they want to know when they’re going to get it. And I hear you. We’re working hard to increase the rollout, but we’re also being patient and carefully studying customer behavior as we grow so that we manage credit risk to profitably scale over time. While it’s still early, I wanted to share some emerging data from our 100,000 Gold card customers. First, customers love the Gold card. App store ratings continue to be five out of five with over 10,000 five-star reviews. Customers tell us they love the metal card, the digital app, and of course, the 3% rewards,” the company’s CEO Vlad Tenev said on the call.
Read the entire call transcript here.
Recently, Robinhood expanded its reach by acquiring TradePMR, a firm specializing in brokerage and custodian services for Registered Investment Advisors (RIA), in a deal valued at approximately $300 million. The move is seen as part of Robinhood’s push into the retirement account market. As of Q2 2024, the Investment Company Institute reported around $40 trillion in retirement investment assets in the U.S.
Robinhood’s estimated forward revenue growth stands at 26.79% year-over-year, nearly 393.55% above the sector median of 5.43%.
Overall, HOOD ranks 7th on our list of stocks Jim Cramer is talking about as heading into December. While we acknowledge the potential of HOOD, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. 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 the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.