Robinhood Markets, Inc.

Key Points
Favorable regulatory winds could help Robinhood redefine what brokerages do.
Robinhood is a key player in the tokenization of stocks and other real-world assets.
Its prediction markets product is attracting investor attention.
Robinhood Markets' (NASDAQ: HOOD) stock price has gained over 925% since the start of January 2024. That's significantly more than some of the cryptocurrencies that make up a good chunk of its trading revenue. Bitcoin gained almost 150% in the same period. The pioneering brokerage firm has been boosted by a number of factors in the past couple of years, including its September inclusion in the S&P 500.
Several analysts think the stock still has momentum. For example, Citizen JMP analyst Devin Ryan recently reiterated his Outperform rating and increased his price target from $130 to $170. Ryan thinks that Robinhood will beat analyst expectations for its upcoming Q3 results and sees several opportunities for growth.
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Robinhood just keeps on innovating
Robinhood's constant, and at times disruptive, innovation is a key reason that analysts think it can grow more. From leading the charge on zero-commission trading to launching its own crypto wallet, the fintech has a reputation as a change-maker. Just this year, it launched tokenized stocks, a prediction market hub, and a social investment platform.
With a pro-crypto administration and regulators actively looking for ways to foster financial and technological growth, the time is certainly ripe for companies able to push to new frontiers. For example, Securities and Exchange Commission (SEC) Chairman Paul S. Atkins said in July that the evolution of super apps would be a priority for the administration. Super apps mean brokerages could offer a range of other financial and investment services in the same place, something Robinhood is already excelling at.
Here are some of the big moves to watch from Robinhood.
More than a token effort
Robinhood announced in July that it would offer tokenized U.S. stocks and ETFs to European customers. The move puts the brokerage at the forefront of what the World Economic Forum described as a "quiet revolution." Tokenization involves recording ownership of real-world assets (RWA) on the blockchain. That can apply to stocks, bonds, currencies, real estate, and more.
The attraction is that it removes some of the friction in investing by making transactions faster, more efficient, and more transparent. It fits with wider moves toward 24/7 trading because -- as cryptocurrency investors know all too well -- the blockchain doesn't keep regular hours. It can also make fractional ownership more viable. Sure, you can buy fractional shares today. But that's a drop in the ocean. Imagine a digital token that denotes ownership of a tiny piece of real estate -- investors could almost buy a tokenized version of each individual brick in a building.
For Robinhood, tokenized stocks are just the start. The company is building its own blockchain that's optimized for real-world asset tokenization. In the past few years, it has straddled the worlds of traditional finance and cryptocurrency, and tokenization is a continuation of this journey. As such, Robinhood is well-positioned to take a chunk of what McKinsey estimates will be a $2 trillion market by 2030.
Going social and playing the prediction game
In September, it unveiled Robinhood Social, which mixes social media with investment activity. It plans to launch for a limited number of U.S. customers next year. Users will be able to share their views on investments on the same platform they trade stocks, options, futures, crypto, and prediction markets.
Prediction markets are a somewhat controversial product Robinhood launched this year. People can bet on who might win the next election, whether an asset's price might increase or decrease, or the result of a sports match. Robinhood says predictions are regulated as futures and swaps by the Commodity Futures Trading Commission (CFTC), but critics say it is more like gambling than investing.
Trading places
Robinhood wants to be more than a brokerage -- it meet customers' financial needs, from investing in stocks to buying crypto or managing their money. It already offers a mortgage deal for Robinhood Gold customers as well as some banking products. Tokenization and other new products are another part of that mission.
Branching out beyond trading matters, because one potential cloud on the Robinhood horizon is that it is extremely reliant on transaction fees. Its latest results show that almost 60% revenues in the first half of the year come from transactions. If the economy falters or we enter another crypto winter, there's a risk that Robinhood's revenue takes a big hit.
Regulation could be another issue. U.S. regulators are keen to innovate right now, but that may not last forever. And other countries may be more cautious about its wide product range, especially those that push the lines of existing investment laws.
Nonetheless, if you're looking for a way to get exposure to crypto, real-world asset tokenization, or other evolving aspects of the fintech industry, Robinhood may make a good addition to your portfolio. It's come a long way in the past two years, but it has the potential to go even further.
Should you invest $1,000 in Robinhood Markets right now?
Before you buy stock in Robinhood Markets, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Robinhood Markets wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
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*Stock Advisor returns as of October 27, 2025
Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Meet the Newest Addition to the S&P 500. The Stock Has Soared 925% Since Early Last Year, and It's Still a Buy Right Now, According to 1 Wall Street Analyst

Key Points
Robinhood's retail investors are rushing back as the market sets fresh record highs.
SoFi's growth is stabilizing as it overcomes its biggest near-term challenges.
Investors should stick with the cheaper stock with the stronger growth rates.
Robinhood Markets (NASDAQ: HOOD) and SoFi Technologies (NASDAQ: SOFI) both want to disrupt traditional financial institutions with their fintech platforms. Robinhood simplified investing with its streamlined app and commission-free trades. SoFi, which initially only offered student loans, has evolved into a one-stop online shop for various financial services.
Over the past 12 months, Robinhood's stock has surged more than 400% as SoFi's stock rallied nearly 170%. Let's see why these stocks soared -- and which one is a better buy.
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Robinhood's speculative investors are returning
Robinhood mainly serves smaller retail investors than larger brokerages. To subsidize its free trades, it sells its clients' trades to high-frequency trading (HFT) firms, which bundle together those tiny orders into bigger batches to generate slim profits from every rapid-fire trade.
Robinhood gained a lot of new investors during the buying frenzy in meme stocks, growth stocks, and cryptocurrencies in 2020 and 2021. A lot of that growth was fueled by low interest rates, stimulus checks, social media buzz, and a contagious "fear of missing out" (FOMO).
As interest rates rose in 2022 and 2023, many investors rotated toward more conservative and higher-yielding investments. That rotation chilled Robinhood's growth as its core investors placed fewer trades and transferred less money to its platform. But as interest rates declined in 2024 and 2025, those investors returned and its revenue surged. Its number of funded accounts reached 27.4 million at the end of the second quarter of 2025, which was more than double its 12.5 million accounts at the end of 2020.
From 2020 to 2024, its annual revenue more than tripled from $959 million to $2.95 billion. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) stayed positive in 2023 and more than doubled in 2024, and it turned profitable on a generally accepted accounting principles (GAAP) basis in 2024. That rapid expansion can be attributed to its physical Cash Card, its new digital payment features, and its perk-filled Gold subscription plans -- which grew 76% year over year to 3.5 million subscribers in the second quarter of 2025.
From 2024 to 2027, analysts expect Robinhood's revenue and adjusted EBITDA to grow at a compound annual growth rate (CAGR) of 24% and 34%, respectively, as it continues to disrupt traditional brokerages and expand its ecosystem to challenge other fintech companies. But with an enterprise value of $122.5 billion, it isn't cheap at 40 times next year's adjusted EBITDA.
SoFi's strongest headwinds are dissipating
SoFi provides a wide range of loans, insurance policies, estate planning services, credit cards, and stock trading tools. It officially became an online bank upon receiving a U.S. bank charter in 2022, while its fintech subsidiary, Galileo, provides its own payment and card issuing services.
SoFi grew rapidly because it attracted younger and digitally native users who didn't want to deal with brick-and-mortar banks and wanted to shop for all of their financial services within a single platform. From the end of 2020 to the second quarter of 2025, its number of unique members surged from 1.9 million to 11.7 million as its number of products soared from 2.5 million to 17.1 million. Galileo, which operates independently of SoFi, serves nearly 160 million accounts.
From 2020 to 2024, SoFi's revenue grew at a CAGR of 47%. Its adjusted EBITDA turned positive in 2021 and rose at a CAGR of 181% over the following three years. It also turned profitable on a GAAP basis in 2024. It achieved that growth even as it grappled with the temporary freeze on student loan payments (from 2020 to 2023) and higher interest rates, which curbed the market's appetite for new loans. Its transformation into a full digital bank also temporarily drove up its expenses and reduced its margins.
From 2024 to 2027, analysts expect SoFi's revenue and adjusted EBITDA to grow at a CAGR of 25% and 40%, respectively. Its business is gradually maturing, but its two biggest headwinds are dissipating -- student loan payments have resumed and interest rates are declining. It's also been rolling out more features for its "super app" of financial services as it uses its recent acquisition of Technisys (a cloud-based core banking platform) to support Galileo's growth. With an enterprise value of $33.9 billion, its stock still looks reasonably valued at 22 times next year's adjusted EBITDA.
The better buy: SoFi
Robinhood and SoFi could both grow much larger over the next few years. But if I had to choose one over the other in this frothy market, I'd pick SoFi because it's better diversified, it's growing slightly faster, and its stock looks cheaper relative to its growth potential. Robinhood is still a solid investment, but the next market downturn could crush its valuations while driving away many of its core investors. When that happens, Robinhood might become a more appealing stock than SoFi.
Should you invest $1,000 in Robinhood Markets right now?
Before you buy stock in Robinhood Markets, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Robinhood Markets wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 27, 2025
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Better Fintech Stock: Robinhood vs. SoFi

The S&P 500 Index ($SPX) (SPY) on Monday rose by +1.22%, the Dow Jones Industrials Index ($DOWI) (DIA) rose by +0.69%, and the Nasdaq 100 Index ($IUXX) (QQQ) rose by +1.82%. December E-mini S&P futures (ESZ25) rose by +1.21%, and December E-mini Nasdaq futures (NQZ25) rose by +1.83%.
US stocks rallied sharply on Monday after US and Chinese negotiators, who met over the weekend in Malaysia, said they reached a tentative trade agreement to be finalized at Thursday's summit between Presidents Trump and Xi on the sidelines of the ASEAN conference in Malaysia. Treasury Secretary Bessent said the agreement means the US threat of a 100% tariff on US imports from China, set to start November 1, is "effectively off the table." Meanwhile, China agreed not to restrict the export of rare earth metals for at least one year and to buy a "substantial" amount of US soybeans. The two sides also made progress on shipping fees and US demands that China crack down on the export to the US of fentanyl and precursors. The two sides may also reach an agreement that would allow US consumers to continue to access TikTok.
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Treasury Secretary Bessent said Monday that the pool of candidates for the next Fed Chair has been narrowed to Christopher Waller, Kevin Warsh, Kevin Hassett, Michelle Bowman, and Rick Rieder. President Trump is expected to announce a decision on a new Fed Chair by year-end to replace current Fed Chair Powell, whose term as the Fed Chairman ends on May 15, 2026. Mr. Powell's separate term as a Fed Governor runs until January 2028, though he faces pressure from Mr. Trump to step down as a Fed Governor as well, so Mr. Trump can appoint a more dovish Fed governor.
This is a busy week, with the FOMC meeting on Tuesday and Wednesday, when it is expected to cut its federal funds rate target by -25 bp. Also, five of the Magnificent Seven companies report earnings this week, with Alphabet, Meta, and Microsoft reporting on Wednesday, and Apple and Amazon.com reporting on Thursday.
There was some carry-over support from last Friday's Sep US CPI report of +3.0% y/y for both the nominal and core figures, which was slightly weaker than expectations of +3.1% y/y for both figures.
Trade relations with Canada were a negative factor for stocks on Monday after President Trump said on Saturday that he would impose a new 10% tariff on US imports from Canada as punishment for last week's anti-tariff advertisement released by the provincial government of Ontario. Mr. Trump initially said that he was only halting US trade negotiations with Canada due to the ad, but he escalated the punishment over the weekend by imposing a new 10% tariff, even though Ontario had agreed to pause the ad campaign.
Ontario's ad featured former US President Reagan speaking out in a 1987 address in favor of free trade and against tariffs, calling tariffs an outdated idea that stifles innovation, drives up prices, and hurts US workers. Mr. Trump claimed the ad was deceptive and said it was designed to influence the US Supreme Court ahead of oral arguments on November 5 on the legality of Mr. Trump's reciprocal tariffs. Lower courts have already deemed Mr. Trump's reciprocal tariffs illegal, ruling the tariffs are based on a specious claim of emergency authority. If the US Supreme Court upholds those rulings, the US government will have to refund the tariffs already collected, and Mr. Trump's power to impose tariffs will be limited to well-founded sections of US trade law.
The US government shutdown continues into its fifth week, weighing on market sentiment and the US economy. The government shutdown is delaying the release of government reports, including all the recent weekly unemployment claims reports, the September unemployment and payroll report, Aug trade balance, Sep retail sales, Sep PPI, Sep housing starts, Sep industrial production, Sep leading indicators, and others. Bloomberg Economics estimates that 640,000 federal workers will be furloughed during the shutdown, which would expand jobless claims and push the unemployment rate up to 4.7%.
The markets are focused on earnings results as the Q3 earnings season continues. According to Bloomberg Intelligence, 84% of the S&P 500 companies that have reported so far have beaten forecasts, on course for the best quarter since 2021. However, Q3 profits are expected to have risen by +7.2% y/y, the smallest increase in two years. Also, Q3 sales growth is projected to slow to +5.9% y/y from +6.4% in Q2.
Overseas stock markets on Monday closed higher. The Euro Stoxx 50 closed up +0.64%. China's Shanghai Composite closed up +1.18%. Japan's Nikkei Stock 225 closed up +2.46%.
Interest Rates
December 10-year T-notes (ZNZ5) on Monday rose slightly by +0.5 tick. The 10-year T-note yield fell -1.2 bp to 3.989%. T-note prices initially fell on Monday due to the US-Chinese trade agreement, which reduced safe-haven demand for Treasury securities and was positive for the US and Chinese economies. T-note prices were also pressured by the rally in US stocks.
However, T-note prices recovered later in the day as the 10-year inflation expectations rate fell by -1.1 bp to 2.288%. T-notes have support from the ongoing US government shutdown, which could lead to additional job losses, reduced consumer spending, and a weakened US economy, potentially allowing the Fed to continue cutting interest rates.
The markets are discounting a 98% chance of a -25 bp rate cut at this week's FOMC meeting on Tuesday and Wednesday (Oct 28-29).
European government bond yields closed lower. The 10-year German bund yield fell -1.0 bp to 2.616%. The 10-year UK gilt yield fell 3.0 bp at 4.402%.
Swaps are discounting a 1% chance for a -25 bp rate cut by the ECB at its next policy meeting on October 30.
US Stock Movers
The Magnificent Seven stocks all closed higher on Monday, led by a +4.3% gain in Tesla (TSLA), a +3.6% gain in Alphabet (GOOG), and gains of more than +2% in Nvidia (NVDA) and Apple (AAPL).
Chip stocks traded higher across the board Monday, led by a +11% gain in Qualcomm (QCOM) on news of a new AI chip and computer line to compete with Nvidia. Marvell Technology (MRVL) rose more than +5%, and Arm Holdings (ARM) rose more than +4%. ON Semiconductors (ON), Lam Research (LRCX), and Intel (INTC) all rose by more than +3%.
Crypto stocks traded higher, with support from Monday's gains of more than +3% in Bitcoin (^BTCUSD) and +5% in Ethereum (^ETHUSD). Riot Platforms (RIOT) rallied more than +7%, Strategy (MSTR) rallied +2.3%, and Coinbase (COIN) rallied +2.0%.
Avidity Biosciences (RNA) rallied +42% after news that Swiss-based Novartis plans to buy the company in a deal worth $12 billion. Novartis ADR shares (NVS) fell -0.9%.
Ohio-based Huntington Bancshares (HBAN) agreed to buy Cadence Bank (CADE) for $7.4 billion in an all-stock deal to expand into the Southeast and South. Huntington fell -1.8%, while Cadence rallied +4.4%.
American Water Works (AWK) fell -2.5%, and Essential Utilities (WTRG) fell -1.4%, after news that the two companies finalized AWK's purchase of Essential Utilities for $12 billion in an all-stock deal.
Keurig Dr Pepper (KDP) rallied more than +7% after raising its full-year net sales guidance.
Lululemon Athletica (LULU) rallied about +2% on news of an agreement with the National Football League and sports merchandiser Fanatics Inc to develop a line of fan apparel.
Robinhood Markets (HOOD) rose more than +4% after CICC gave the brokerage a new rating of outperform.
Newmont (NEM) fell more than -5% as the company seeks to gain control of Barrick's gold mines in Nevada.
Boeing (BA) rose +0.8% even though factory workers in St Louis narrowly rejected a new 5-year contract that would have ended a 3-month strike that has disrupted the company's main military manufacturing operations.
Earnings Reports(10/28/2025)
DR Horton Inc (DHI), PayPal Holdings Inc (PYPL), UnitedHealth Group Inc (UNH), Wayfair Inc (W), Labcorp Holdings Inc (LH), Corning Inc (GLW), Armstrong World Industries Inc (AWI), Sysco Corp (SYY), Royal Caribbean Cruises Ltd (RCL), VF Corp (VFC), Carrier Global Corp (CARR), A O Smith Corp (AOS), United Parcel Service Inc (UPS), Hubbell Inc (HUBB), Sherwin-Williams Co/The (SHW), Ecolab Inc (ECL), Zebra Technologies Corp (ZBRA), IQVIA Holdings Inc (IQV), MSCI Inc (MSCI), Smithfield Foods Inc (SFD), Tenet Healthcare Corp (THC), Applied Industrial Technologie (AIT), Axalta Coating Systems Ltd (AXTA), Repligen Corp (RGEN), Xylem Inc/NY (XYL), Invesco Ltd (IVZ), SoFi Technologies Inc (SOFI), Regeneron Pharmaceuticals Inc (REGN), American Tower Corp (AMT), Incyte Corp (INCY), ATI Inc (ATI), NextEra Energy Inc (NEE), Neurocrine Biosciences Inc (NBIX), Booking Holdings Inc (BKNG), Mondelez International Inc (MDLZ), Sensata Technologies Holding P (ST), WP Carey Inc (WPC), Enphase Energy Inc (ENPH), Aurora Innovation Inc (AUR), Landstar System Inc (LSTR), Equity Residential (EQR), ONEOK Inc (OKE), Flowserve Corp (FLS), Caesars Entertainment Inc (CZR), Edison International (EIX), CoStar Group Inc (CSGP), Frontier Communications Parent (FYBR), MSA Safety Inc (MSA), Chemed Corp (CHE), Range Resources Corp (RRC), BXP Inc (BXP), PPG Industries Inc (PPG), RenaissanceRe Holdings Ltd (RNR), Regency Centers Corp (REG), ExlService Holdings Inc (EXLS), Veralto Corp (VLTO), Visa Inc (V), Expand Energy Corp (EXE), Seagate Technology Holdings PL (STX), Element Solutions Inc (ESI), Highwoods Properties Inc (HIW), Electronic Arts Inc (EA), Teradyne Inc (TER).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Rally on US-China Preliminary Trade Agreement

Looking at the sectors faring best as of midday Monday, shares of Technology & Communications companies are outperforming other sectors, higher by 1.1%. Within the sector, Qualcomm Inc (Symbol: QCOM) and Robinhood Markets Inc (Symbol: HOOD) are two large stocks leading the way, showing a gain of 12.5% and 4.9%, respectively. Among technology ETFs, one ETF following the sector is the Technology Select Sector SPDR ETF (Symbol: XLK), which is up 1.6% on the day, and up 28.77% year-to-date. Qualcomm Inc, meanwhile, is up 25.39% year-to-date, and Robinhood Markets Inc is up 293.50% year-to-date. QCOM makes up approximately 1.6% of the underlying holdings of XLK.
The next best performing sector is the Services sector, up 0.7%. Among large Services stocks, Alphabet Inc (Symbol: GOOGL) and Alphabet Inc (Symbol: GOOG) are the most notable, showing a gain of 3.2% and 3.2%, respectively. One ETF closely tracking Services stocks is the iShares U.S. Consumer Services ETF (IYC), which is up 1.0% in midday trading, and up 9.31% on a year-to-date basis. Alphabet Inc, meanwhile, is up 42.02% year-to-date, and Alphabet Inc is up 41.49% year-to-date.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Monday. As you can see, five sectors are up on the day, while three sectors are down.
Technology & Communications
+1.1%
Also see:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Monday Sector Leaders: Technology & Communications, Services

The S&P 500 Index ($SPX) (SPY) is up +0.84%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.41%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +1.49%. December E-mini S&P futures (ESZ25) are up +0.87%, and December E-mini Nasdaq futures (NQZ25) are up +1.51%.
US stocks rallied today after US and Chinese negotiators, who met over the weekend in Malaysia, said they reached a tentative trade agreement to be finalized at Thursday's summit between Presidents Trump and Xi on the sidelines of the Asia-Pacific Economic Cooperation conference in South Korea. Treasury Secretary Bessent said the agreement means the US threat of a 100% tariff on US imports from China, set to start November 1, is "effectively off the table." Meanwhile, China agreed not to restrict the export of rare earth metals for at least one year and to buy a "substantial" amount of US soybeans. The two sides also made progress on shipping fees and US demands that China crack down on the export to the US of fentanyl and precursors. The two sides may also reach an agreement that would allow US consumers to continue to access TikTok.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Treasury Secretary Bessent said today that the pool of candidates for the next Fed Chair has been narrowed to Christopher Waller, Kevin Warsh, Kevin Hassett, Michelle Bowman, and Rick Rieder. President Trump is expected to announce a decision on a new Fed Chair by year-end to replace current Fed Chair Powell, whose term as the Fed Chairman ends on May 15, 2026. Mr. Powell's separate term as a Fed Governor runs until January 2028, though he faces pressure from Mr. Trump to step down as a Fed Governor as well, so Mr. Trump can appoint a more dovish Fed governor.
This is a busy week, with the FOMC meeting on Tuesday and Wednesday, when it is expected to cut its federal funds rate target by -25 bp. Also, five of the Magnificent Seven companies report earnings this week, with Alphabet, Meta, and Microsoft reporting on Wednesday, and Apple and Amazon.com reporting on Thursday.
There is some carry-over support from last Friday's Sep US CPI report of +3.0% y/y for both the nominal and core figures, which was slightly weaker than expectations for both of +3.1% y/y.
Trade relations with Canada are a negative factor for stocks after President Trump on Saturday said he will impose a new 10% tariff on US imports from Canada as punishment for last week's anti-tariff advertisement released by the provincial government of Ontario. Mr. Trump initially said that he was only halting US trade negotiations with Canada due to the ad, but he escalated the punishment over the weekend by imposing a new 10% tariff, even though Ontario had agreed to pause the ad campaign.
Ontario's ad featured former US President Reagan speaking out in a 1987 address in favor of free trade and against tariffs, calling tariffs an outdated idea that stifles innovation, drives up prices, and hurts US workers. Mr. Trump claimed the ad was deceptive and said it was designed to influence the US Supreme Court ahead of oral arguments on November 5 on the legality of Mr. Trump's reciprocal tariffs. Lower courts have already deemed Mr. Trump's reciprocal tariffs illegal, ruling the tariffs are based on a specious claim of emergency authority. If the US Supreme Court upholds those rulings, the US government will have to refund the tariffs already collected, and Mr. Trump's power to impose tariffs will be limited to well-founded sections of US trade law.
The US government shutdown continues into its fifth week, weighing on market sentiment and the US economy. The government shutdown is delaying the release of government reports, including all the recent weekly unemployment claims reports, the September unemployment and payroll report, Aug trade balance, Sep retail sales, Sep PPI, Sep housing starts, Sep industrial production, Sep leading indicators, and others. Bloomberg Economics estimates that 640,000 federal workers will be furloughed during the shutdown, which would expand jobless claims and push the unemployment rate up to 4.7%.
The markets are focused on earnings results as the Q3 earnings season continues. According to Bloomberg Intelligence, 84% of the S&P 500 companies that have reported so far have beaten forecasts, on course for the best quarter since 2021. However, Q3 profits are expected to have risen by +7.2% y/y, the smallest increase in two years. Also, Q3 sales growth is projected to slow to +5.9% y/y from +6.4% in Q2.
Overseas stock markets today are higher. The Euro Stoxx 50 is up +0.62%. China's Shanghai Composite closed up +1.18%. Japan's Nikkei Stock 225 closed up +2.46%.
Interest Rates
December 10-year T-notes (ZNZ5) are down -7 ticks. The 10-year T-note yield is up +2.3 bp at 4.024%. T-note prices are trading lower due to the US-Chinese trade agreement, which reduced safe-haven demand for Treasury securities and is positive for the US and Chinese economies. T-note prices are also being pressured by the rally in US stocks and today's +0.7 bp rise in the 10-year breakeven inflation expectations rate.
T-notes have support from the ongoing US government shutdown, which could lead to additional job losses, reduced consumer spending, and a weakened US economy, potentially allowing the Fed to continue cutting interest rates.
The markets are discounting a 99% chance of a -25 bp rate cut at this week's FOMC meeting on Tuesday and Wednesday (Oct 28-29).
European government bond yields are mixed. The 10-year German bund yield is up +0.3 bp at 2.629%. The 10-year UK gilt yield is down -2.0 bp at 4.412%.
Swaps are discounting a 1% chance for a -25 bp rate cut by the ECB at its next policy meeting on October 30.
US Stock Movers
The Magnificent Seven stocks are all trading higher today, led by a gain of more than +4% in Tesla (TSLA), and gains of more than +2% in Alphabet (GOOG) and Nvidia (NVDA).
Chip stocks are trading higher across the board today, led by a +12.6% gain in Qualcomm (QCOM) on news of a new AI chip and computer line to compete with Nvidia. Marvell Technology (MRVL) is up more than +5%. Arm Holdings (ARM), ON Semiconductors (ON), and Lam Research (LRCX) are up more than +4%.
Crypto stocks are trading higher today, with support from today's gains of more than +3% in Bitcoin (^BTCUSD) and +5% in Ethereum (^ETHUSD). Riot Platforms (RIOT) is up more than +4% and Coinbase (COIN) is up more than +2%.
Avidity Biosciences (RNA) is up +42% after news that Swiss-based Novartis plans to buy the company in a deal worth $12 billion. Novartis ADR shares (NVS) are down -1%.
Ohio-based Huntington Bancshares (HBAN) agreed to buy Cadence Bank (CADE) for $7.4 billion in an all-stock deal to expand into the Southeast and South. Huntington is down more than -2% while Cadence is up more than +4%.
American Water Works (AWK) is down -3% and Essential Utilities (WTRG) is down -0.9% after news that the two companies have finalized AWK's purchase of Essential Utilities for $12 billion in an all-stock deal.
Keurig Dr Pepper (KDP) is up more than +7% after raising its full-year net sales guidance.
Lululemon Athletica (LULU) is up more than +3% on news of an agreement with the National Football League and sports merchandiser Fanatics Inc to develop a line of fan apparel.
Robinhood Markets (HOOD) is up more than 4% after CICC gave the brokerage a new rating of outperform.
Newmont (NEM) is down more than -6% as the company seeks to gain control of Barrick's gold mines in Nevada.
Boeing (BA) is trading slightly higher even though factory workers in St Louis narrowly rejected a new 5-year contract that would have ended a 3-month strike that has disrupted the company's main military manufacturing operations.
Earnings Reports(10/27/2025)
Keurig Dr Pepper Inc (KDP), Revvity Inc (RVTY), Arch Capital Group Ltd (ACGL), Whirlpool Corp (WHR), Simpson Manufacturing Co Inc (SSD), Alexandria Real Estate Equities (ARE), Brixmor Property Group Inc (BRX), Nucor Corp (NUE), NOV Inc (NOV), Hartford Insurance Group Inc/T (HIG), Brown & Brown Inc (BRO), Cincinnati Financial Corp (CINF), Crane Co (CR), F5 Inc (FFIV), Universal Health Services Inc (UHS), Amkor Technology Inc (AMKR), FTAI Aviation Ltd (FTAI), Principal Financial Group Inc (PFG), Kilroy Realty Corp (KRC), Welltower Inc (WELL), Avis Budget Group Inc (CAR), Cadence Design Systems Inc (CDNS), Confluent Inc (CFLT), Olin Corp (OLN), Waste Management Inc (WM), BioMarin Pharmaceutical Inc (BMRN), NXP Semiconductors NV (NXPI).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Palantir Technologies Inc (Symbol: PLTR), where a total of 568,222 contracts have traded so far, representing approximately 56.8 million underlying shares. That amounts to about 123.1% of PLTR's average daily trading volume over the past month of 46.1 million shares. Especially high volume was seen for the $200 strike call option expiring October 31, 2025, with 77,542 contracts trading so far today, representing approximately 7.8 million underlying shares of PLTR. Below is a chart showing PLTR's trailing twelve month trading history, with the $200 strike highlighted in orange:
Apple Inc (Symbol: AAPL) saw options trading volume of 379,869 contracts, representing approximately 38.0 million underlying shares or approximately 86.2% of AAPL's average daily trading volume over the past month, of 44.1 million shares. Especially high volume was seen for the $267.50 strike call option expiring November 07, 2025, with 26,864 contracts trading so far today, representing approximately 2.7 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $267.50 strike highlighted in orange:
And Robinhood Markets Inc (Symbol: HOOD) saw options trading volume of 253,319 contracts, representing approximately 25.3 million underlying shares or approximately 81.9% of HOOD's average daily trading volume over the past month, of 30.9 million shares. Especially high volume was seen for the $150 strike call option expiring October 31, 2025, with 23,023 contracts trading so far today, representing approximately 2.3 million underlying shares of HOOD. Below is a chart showing HOOD's trailing twelve month trading history, with the $150 strike highlighted in orange:
For the various different available expirations for PLTR options, AAPL options, or HOOD options, visit StockOptionsChannel.com.
Also see:
Secondary Stock Offerings
Institutional Holders of CASY
Funds Holding ICAP
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Monday Option Activity: PLTR, AAPL, HOOD

The S&P 500 Index ($SPX) (SPY) is up +0.87%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.52%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +1.32%. December E-mini S&P futures (ESZ25) are up +0.82%, and December E-mini Nasdaq futures (NQZ25) are up +1.30%.
US stocks rallied today after US and Chinese negotiators, who met over the weekend in Malaysia, said they reached a tentative trade agreement to be finalized at Thursday’s summit between Presidents Trump and Xi on the sidelines of the Asia-Pacific Economic Cooperation conference in South Korea. Treasury Secretary Bessent said the agreement means that the US threat of a 100% tariff on US imports from China starting November 1 is “effectively off the table.” Meanwhile, China agreed not to restrict the export of rare earth metals for at least one year and to buy a “substantial” amount of US soybeans. The two sides also made progress on shipping fees and US demands that China crack down on the export to the US of fentanyl and precursors. The two sides may also reach an agreement that would allow US consumers to continue to access TikTok.
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Treasury Secretary Bessent said today that the pool of candidates for the next Fed Chair has been narrowed to Christopher Waller, Kevin Warsh, Kevin Hassett, Michelle Bowman, and Rick Rieder. President Trump is expected to announce a decision on a new Fed Chair by year-end to replace current Fed Chair Powell, whose term as the Fed Chairman ends on May 15, 2026. Mr. Powell’s term as a Fed Governor runs until January 2028, although he will face pressure from Mr. Trump to step down as a Fed Governor as well, so Mr. Trump can appoint a more dovish Fed governor.
This will be a busy week, with the FOMC meeting on Tuesday and Wednesday, when it is expected to cut its federal funds rate target by -25 bp. Also, five of the Magnificent Seven stocks report earnings this week, with Alphabet, Meta, and Microsoft reporting on Wednesday, and Apple and Amazon.com reporting on Thursday.
There is some carry-over support from last Friday’s Sep US CPI report of +3.0% y/y for both the nominal and core figures, which was slightly weaker than expectations for both of +3.1% y/y.
Trade relations with Canada are a negative factor for stocks after President Trump on Saturday said he will impose a new 10% tariff on US imports from Canada as punishment for last week’s anti-tariff advertisement released by the provincial government of Ontario. Mr. Trump initially said only that he was halting US trade negotiations with Canada due to the ad, but he escalated the punishment over the weekend by imposing a new 10% tariff, even though Ontario had agreed to pause the ad campaign.
Ontario’s ad featured former US President Reagan speaking out in a 1987 address in favor of free trade and against tariffs, calling tariffs an outdated idea that stifles innovation, drives up prices, and hurts US workers. Mr. Trump claimed the ad was deceptive and said it was designed to influence the US Supreme Court ahead of oral arguments on November 5 on the legality of Mr. Trump’s reciprocal tariffs. Lower courts have already deemed Mr. Trump’s reciprocal tariffs illegal, ruling the tariffs are based on a specious claim of emergency authority. If the US Supreme Court upholds those rulings, the US government will have to refund the tariffs already collected, and Mr. Trump’s power to impose tariffs will be limited to well-founded sections of US trade law.
The US government shutdown continues into its fifth week, weighing on market sentiment and the US economy. The government shutdown is delaying the release of government reports, including all the recent weekly initial unemployment claims reports, the September unemployment and payroll report, Aug trade balance, Sep retail sales, Sep PPI, Sep housing starts, Sep industrial production, Sep leading indicators, and others. Bloomberg Economics estimates that 640,000 federal workers will be furloughed during the shutdown, which would expand jobless claims and push the unemployment rate up to 4.7%.
The markets are focused on earnings results as the Q3 earnings season continues. According to Bloomberg Intelligence, 84% of the S&P 500 companies that have reported so far have beaten forecasts, on course for the best quarter since 2021. However, Q3 profits are expected to have risen by +7.2% y/y, the smallest increase in two years. Also, Q3 sales growth is projected to slow to +5.9% y/y from +6.4% in Q2.
Overseas stock markets today are higher. The Euro Stoxx 50 is up +0.27%. China’s Shanghai Composite closed up +1.18%. Japan’s Nikkei Stock 225 closed up +2.46%.
Interest Rates
December 10-year T-notes (ZNZ5) are down -4.5 ticks. The 10-year T-note yield is up +1.0 bp at 4.010%. T-note prices are trading lower due to the US-Chinese trade agreement, which is positive for the US and Chinese economies. T-note prices are also being pressured by the rally in US stocks and today’s +0.7 bp rise in the 10-year breakeven inflation expectations rate.
T-notes have support from the ongoing US government shutdown, which could lead to additional job losses, reduced consumer spending, and a weakened US economy, potentially allowing the Fed to continue cutting interest rates.
The markets are discounting a 97% chance of a -25 bp rate cut at this week’s FOMC meeting on Tuesday and Wednesday (Oct 28-29).
European government bond yields are steady to lower. The 10-year German bund yield is unchanged at 2.626%. The 10-year UK gilt yield is down -2.0 bp at 4.411%.
Swaps are discounting a 1% chance for a -25 bp rate cut by the ECB at its next policy meeting on October 30.
US Stock Movers
The Magnificent Seven stocks are all trading higher today, led by gains of more than +2% in Nvidia (NVDA), Alphabet (GOOG), Tesla (TSLA), and Meta Platforms (META).
Chip stocks are trading higher across the board today, led by gains of more than +3% in Intel (INTC) and Lam Research (LRCX).
Crypto stocks are trading higher today, with support from today’s gains of more than +3% in Bitcoin (^BTCUSD) and +5% in Ethereum (^ETHUSD). Strategy (MSTR), MARA Holdings (MARA), and Riot Platforms (RIOT) are up more than +2%. Coinbase (COIN) is up more than +1%.
Avidity Biosciences (RNA) is up +42% after news that Swiss-based Novartis plans to buy the company in a deal worth $12 billion. Novartis ADR shares (NVS) down -2%.
Ohio-based Huntington Bancshares (HBAN) agreed to buy Cadence Bank (CADE) for $7.4 billion in an all-stock deal to expand into the Southeast and South. Huntington is down -2% while Cadence is up more than +4%.
Keurig Dr Pepper (KDP) is up more than +4% after raising its full-year net sales guidance.
Lululemon Athletica (LULU) is up more than +2% on news of an agreement with the National Football League and sports merchandiser Fanatics Inc to develop a line of fan apparel.
Robinhood (HOOD) is up more than 5% after CICC gave the brokerage a new rating of outperform.
Newmont (NEM) is down -4% as the company seeks to gain control of Barrick’s gold mines in Nevada.
Boeing (BA) is trading slightly higher even though factory workers in St Louis narrowly rejected a new 5-year contract that would have ended a 3-month strike that has disrupted the company’s main military manufacturing operations.
Earnings Reports(10/27/2025)
Keurig Dr Pepper Inc (KDP), Revvity Inc (RVTY), Arch Capital Group Ltd (ACGL), Whirlpool Corp (WHR), Simpson Manufacturing Co Inc (SSD), Alexandria Real Estate Equities (ARE), Brixmor Property Group Inc (BRX), Nucor Corp (NUE), NOV Inc (NOV), Hartford Insurance Group Inc/T (HIG), Brown & Brown Inc (BRO), Cincinnati Financial Corp (CINF), Crane Co (CR), F5 Inc (FFIV), Universal Health Services Inc (UHS), Amkor Technology Inc (AMKR), FTAI Aviation Ltd (FTAI), Principal Financial Group Inc (PFG), Kilroy Realty Corp (KRC), Welltower Inc (WELL), Avis Budget Group Inc (CAR), Cadence Design Systems Inc (CDNS), Confluent Inc (CFLT), Olin Corp (OLN), Waste Management Inc (WM), BioMarin Pharmaceutical Inc (BMRN), NXP Semiconductors NV (NXPI).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Key Points
Rigetti Computing, Rocket Lab, and Robinhood Markets have been some of the hottest growth stocks to own over the past year.
All three have tremendous growth prospects, but only one has profits.
Investing in hot growth stocks can produce life-changing gains, even over relatively short time frames. Those potential profits are what make taking on greater levels of risk in the market a worthwhile endeavor. Still, you don't want to overdo the risk by putting too much of your portfolio into a single asset. So, for example, rather than investing $10,000 into one growth stock, you might consider putting $2,000 into five different companies. True, that type of diversification will reduce your exposure to your biggest winners, but it also cushions your portfolio from the impact of any underperformers.
Even a $2,000 investment can prove to be seriously rewarding when you're talking about growth stocks. Three excellent examples are Rigetti Computing (NASDAQ: RGTI), Rocket Lab (NASDAQ: RKLB), and Robinhood Markets (NASDAQ: HOOD). If you invested $2,000 into each of these stocks on Halloween last year, the combined value of those positions would now (as of Oct. 17) be around $91,000. Here's how much a $2,000 investment in each of those stocks made just under a year ago would be worth today, and why they have rallied so much.
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Rigetti Computing: $66,000
Investing in Rigetti Computing a year ago would have required a willingness to take on considerable risk. The business was not profitable then, and it still isn't. Investors have mainly bid the shares up based on the expectation that it will be a leading quantum computing company in the future. It could take more than a decade before there are any clear winners in the quantum computing market, but in the meantime, Rigetti has been among the hottest stocks to own in 2025.
Since last Halloween, the tech stock has soared 3,200%, and a $2,000 investment would now be worth around $66,000. That phenomenal return would have been next to impossible to predict back then. This again highlights the risks and opportunities of investing in these small growth stocks: It can be difficult to predict which direction they might go.
As well as Rigetti has done in the past year, however, it could make for a scary stock to be holding today, just because its valuation has gotten so rich. The business only generates around $2 million in sales per quarter. With its current market cap of $14 billion, that gives it a bloated price-to-sales ratio in excess of 1,100.
There's a lot of downside risk to this stock, as the company still has a long way to go in proving that it's the real deal. While Rigetti looks unstoppable today, back in 2023 when quantum computing wasn't so hot, it was a much different story. In May 2023, Rigetti's stock would plummet to a low of just 38 cents -- falling by 95% over a one-year period.
This is a highly volatile and speculative stock, and if you've made a good profit on Rigetti, you may want to consider selling at least some of your shares.
Rocket Lab: $13,000
Another hot growth stock to own over the past year has been Rocket Lab. Although its 540% gain since last Halloween looks modest in comparison to Rigetti's, that would have still resulted in a $2,000 investment growing to a value of just under $13,000 today.
This aerospace company is also struggling with profitability, but it's generating far more revenue than Rigetti. Over the past four quarters, Rocket Lab has brought in $504.3 million in sales, although it incurred a net loss of $231.3 million in that period. It has a long way to go to reach breakeven, but investors are hoping that its Neutron rocket, which is larger than the Electron rocket it has been using thus far, could open up more lucrative and profitable opportunities for the business.
If the Neutron rocket has a successful initial launch later this year, this already hot stock could rise even higher. Rocket Lab is still a risky investment, but it may get to profitability a lot sooner than Rigetti.
Robinhood: $12,000
If you invested $2,000 into Robinhood at the end of October last year, your investment would now be worth a little less than $12,000, as it has risen by around 485%.
Robinhood's trading platform has evolved over the years, and now serves as a hub for people who want to buy and sell stocks or cryptocurrencies. The company has also expanded into "prediction markets," and a few months ago announced that it was launching prediction markets for the NFL and college football that will differ from standard sports betting.
Of these three companies, Robinhood is the only one that is profitable, and its margins aren't minimal, either. Over the past four quarters, the company has reported $1.8 billion in earnings on revenues of $3.6 billion. It trades at a price-to-earnings multiple of 74, which is undoubtedly high, but with its business expanding rapidly and with its brand remaining popular with retail investors, that premium may be justifiable.
Should you invest $1,000 in Rigetti Computing right now?
Before you buy stock in Rigetti Computing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rigetti Computing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
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*Stock Advisor returns as of October 20, 2025
David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Scary-Good Growth Stocks That Would Have Turned $6,000 Invested Last Halloween Into $91,000 Today

Key Points
Robinhood's investing platform is a popular destination for young people looking to trade stocks, options, cryptocurrencies, and more.
It recently signed a deal with Kalshi to bring NFL and college football betting markets to its platform, which sent its stock soaring.
Robinhood stock is now trading at a sky-high valuation, which poses a significant downside risk to investors from here.
Robinhood Markets (NASDAQ: HOOD) runs a popular commission-free investing platform where its clients buy and sell stocks, options, cryptocurrencies, and more. It made a name for itself at the height of the pandemic in 2020 and 2021, when troves of young investors used it to trade speculative meme stocks like GameStop, which sent the platform's revenue soaring.
But Robinhood stock has exploded higher by 240% in 2025 for a different reason. In August, the company signed a deal with Kalshi to bring NFL and college football prediction markets to its platform, which could unlock an entirely new revenue stream from new and existing clients.
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This could be a big opportunity in the long run, but early reports suggest prediction markets are still a very small part of the company's overall business.
If that's true, Robinhood stock could suffer a sharp correction after Nov. 5, which is the date the company is scheduled to release its operating results for the third quarter of 2025.
Robinhood's prediction business is still very small
Gamblers can use traditional sports betting platforms to wager on binary outcomes, like the winner of a football game, whereas prediction markets like Kalshi allow customers to trade in and out of contracts (like shares) that represent the likelihood of a specific event, such as political, economic, and cultural outcomes. That means they can cash out at any time with a small profit or a small loss, before the game is over.
According to Grand View Research, the U.S. sports betting industry is worth about $20 billion annually, and it could grow to $33 billion by 2030, so there is a sizable opportunity up for grabs. Robinhood's clients have a median age of 35, and since many of them are drawn to risky cryptocurrencies and financial derivatives like options contracts, the company thinks they will jump at the chance to wager on football and other sports.
However, according to Wall Street firm Piper Sandler, Robinhood's prediction markets generate revenue at an annualized rate of around $200 million right now. Chief Executive Officer Vlad Tenev cited this estimate in an interview with Bloomberg a few weeks ago, so we can consider it fairly accurate.
But since the company is on track to report $4.2 billion in total revenue this year, prediction markets are a small fraction of its overall business, which makes the blistering rally in its stock this year a little hard to justify.
Robinhood's core revenue shrank during the last two quarters
Total quarterly revenue hit a record high of $1 billion in the final three months of 2024. Transaction revenue, which is the money the company generates from processing stock, options, futures, and cryptocurrency trades on behalf of clients, accounted for $672 million of that total.
Zooming in even further, cryptocurrency trading revenue was $358 million of that total transaction revenue. However, it has since plunged by 55%, coming in at just $160 million in the second quarter of 2025. This caused Robinhood's overall transaction revenue to shrink for two consecutive quarters:
The crypto market ended 2024 with a powerful rally following Donald Trump's presidential election win, but its momentum is fading this year. Dogecoin, for instance, is down 59% from its 52-week high, while Shiba Inu is down 70%. Ripple's XRP token has plunged 34% from its recent peak, and even industry leader Bitcoin recently shed 13% of its value.
These losses have pushed many investors to the sidelines, and it isn't the first time. In the second quarter of 2021, Robinhood's crypto revenue surged by 4,560% and accounted for half of its total transaction revenue, before plunging by 75% just one year later in the second quarter of 2022.
That looks awfully similar to the scenario playing out right now, and it suggests there could be more pain to come for Robinhood's crypto business. This is a key trend to monitor when the company reports third-quarter results.
Beware of the sky-high valuation ahead of Nov. 5
In my opinion, the 240% surge in Robinhood stock this year doesn't really make sense, with its main source of revenue shrinking on a sequential basis at the very same time. In fact, these diverging trends have pushed its price-to-sales ratio (P/S) to 33, which is more than triple its average of 10.6 dating back to the company's initial public offering in 2021.
Unless Robinhood finds significantly more revenue in a very short period of time, its stock would have to plummet by 68% from here just to bring its P/S in line with its long-term average. The prediction markets segment doesn't appear to be the silver bullet investors are looking for, given what we know about its revenue so far.
Plus, Kalshi was recently valued at just $5 billion during a private funding round. Since Robinhood's market capitalization is about $113 billion, it's hard to imagine this partnership making a serious impact on the company's financial results in the near term.
In summary, when you combine Robinhood's sky-high valuation with its declining transaction revenue, investors face the risk of a sharp correction in its stock. I think the third-quarter report on Nov. 5 could be the trigger, especially if prediction markets revenue underwhelms, and its crypto revenue declines even further.
Should you invest $1,000 in Robinhood Markets right now?
Before you buy stock in Robinhood Markets, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Robinhood Markets wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $600,550!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,116,616!*
Now, it’s worth noting Stock Advisor’s total average return is 1,032% — a market-crushing outperformance compared to 192% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and XRP. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Buy Robinhood Stock Before Nov. 5, or Run for the Hills?

Key Points
Equities and cryptocurrency trading on the Robinhood platform is up more than 100% on a year-over-year basis.
Customers have an average account value of more than $10,000 for the first time.
Robinhood continues to roll out new products.
If you trade in the stock market -- and certainly, most of the people reading this article fit that description -- you surely know what Robinhood Markets (NASDAQ: HOOD) does. Robinhood is perhaps the most disruptive financial services company of our time, bringing commission-free trading to the masses with its easy-to-use mobile app.
Robinhood is growing fast -- funded accounts are up 10% from a year ago, but the total platform assets exploded by 112%. Trading volume for equities, options, and cryptocurrency is all up from a year ago.
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And the stock performance is everything investors could hope for, rising 413% in the last 12 months. An investment of $10,000 in Robinhood shares just one year ago would have left you with more than $50,000.
Robinhood is preparing for its third-quarter earnings report after the market closes on Nov. 5, and an earnings beat could propel the stock even higher. Is Robinhood a buy before earnings?
Let's find out.
Robinhood's tailwinds
First, let's acknowledge there's a lot to like about Robinhood right now. The company currently has 26.7 million funded accounts and $304 billion in total platform assets in which customers can trade stocks, equities, and cryptocurrencies.
The increase in traffic has been eye popping during the past year. Trading volume for both equities and cryptocurrencies rose more than 100% on a year-over-year basis, while options contracts jumped by 33%.
Metric
August 2024
August 2025
Year-Over-Year Growth
Equities
$96 billion
$199.2 billion
107%
Options
$147 million
$196 million
33%
Cryptocurrencies
$5.4 billion
$13.7 billion
154%
Total Platform Assets
$144 billion
$303.9 billion
112%
Management said that the average asset-per-funded customer topped $10,000 in the second quarter -- the first time in the company's history that it achieved that level.
Second-quarter revenue topped $989 million, up 45% from a year ago, and net income rose 105% to $386 million. Significantly, the average revenue per user jumped 34% to $151, management said.
While trading volume for Robinhood's core products is up, there are also two other trading opportunities that are driving Robinhood stock.
The first is asset tokenization. Robinhood started its tokenization program in June, making more than 200 stocks available to customers in the European Union. Tokenization works on the blockchain as assets such as stocks are converted into tradeable digital tokens. Robinhood has referred to tokenization as a "freight train" that will drive profits. I expect investors will hear more about it and Robinhood's plans for Europe when it reports earnings.
The second is prediction markets, which Robinhood launched in March. Prediction markets let users bet on what they think will happen in future events, including sports,financial news(like Federal Reserve actions), and popular culture. Robinhood charges a commission of $0.01 per contract. Chief Financial Officer Jason Warnick said in the company's Q2 analyst call that Robinhood saw nearly 100 million contracts in Q2, so the company earned roughly $1 million on those trades.
Robinhood said trading volume on those bets was close to $1 billion.
Robinhood expanded its prediction markets in August with a partnership with Kalshi, which lets it offer trades on the outcomes of college and professional football games and avoid gambling laws. Kalshi is regulated by the Commodities Futures Trading Commission and operates on the blockchain.
The bottom line on Robinhood stock
It's never a sure thing when a company steps up to the podium for its earnings report -- and an earnings miss or weaker-than-expected company forecast could hurt any stock.
But the momentum is firmly with Robinhood, as is its recent earnings history. In fact, for the last three quarters, Robinhood has beaten analysts' expectations, often by a wide margin, in earnings per share (EPS).
Period
EPS Estimate
EPS Actual
Surprise %
Q4 2024
$0.45
$1.01
126.4%
Q1 2025
$0.33
$0.37
13.5%
Q2 2025
$0.31
$0.42
36%
Analysts have an average estimate of $0.52 EPS for the Q3, with that number steadily climbing during the past 90 days. And while that's a big number, it's not out of the question particularly as Robinhood has seen huge increases in trading volume and platform assets over the last year.
The tokenization effort and the predictive markets program are welcome new businesses for Robinhood, which also has its Robinhood premium Gold membership platform (for a fee) and plans to roll out additional wealth management services, including Robinhood Banking.
For me, Robinhood stock is a buy before earnings. I see this stock reaching new highs before the end of the year.
Should you invest $1,000 in Robinhood Markets right now?
Before you buy stock in Robinhood Markets, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Robinhood Markets wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $602,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,092!*
Now, it’s worth noting Stock Advisor’s total average return is 1,028% — a market-crushing outperformance compared to 190% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Robinhood Markets, Inc.

Price history and volume

Shares 360

Investment risk — medium

Investment potential — high

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