HOOD Stock: Robinhood Markets (NASDAQ: HOOD) is on a tear — and Wall Street is watching. The trading platform’s stock hit a four-year high this week, closing at $71.72 on Tuesday and climbing further in pre-market trading Wednesday.
The surge comes amid speculation that Robinhood could be added to the S&P 500 Index, a move that would attract billions in passive investment inflows and cement the company’s place among America’s financial heavyweights.
Adding fuel to the rally is Robinhood’s latest strategic move: the acquisition of cryptocurrency exchange Bitstamp for $200 million. The deal, finalized on June 3, gives Robinhood a broader global footprint in crypto and positions it to challenge established players in the digital asset space.
From Meme Stock to Market Maker
Once known primarily as the go-to app for the 2021 GameStop retail trading frenzy, Robinhood has evolved significantly. It now offers a wide range of services — including high-yield savings, a Gold rewards card, and even retirement accounts — transforming itself into a comprehensive financial hub for everyday investors.
“This isn’t just meme stock mania 2.0,” said one analyst. “Robinhood is maturing into a full-spectrum financial services platform, and its numbers are starting to prove it.”
In fact, Robinhood reported 25.8 million users as of Q1 2025 — an increase of 1.9 million from a year earlier. Assets under custody have surged to $221 billion, marking a 70% year-over-year jump. Total revenue reached $927 million for the quarter, or $3.3 billion over the trailing 12 months.
S&P 500 Inclusion: Catalyst or Caution?
Bank of America recently labeled Robinhood a “prime candidate” for the upcoming S&P 500 rebalancing. Historically, companies added to the index see immediate price pops due to forced buying by passive funds. Coinbase (COIN), another financial tech firm, jumped 34% the week it joined the index.
Though a final decision has not yet been made, the market appears to be pricing in the possibility. Analysts warn that while inclusion would be bullish, the reverse could spark a selloff. Still, many believe Robinhood’s fundamentals support long-term growth, S&P or not.
“Even if HOOD doesn’t make the index this time, any dip would likely be a buying opportunity,” one strategist noted.
Crypto, Tariffs, and Trading Volume
Robinhood’s crypto play is proving timely. With Bitcoin soaring past $100,000 and Solana-based meme coins trending, Robinhood’s crypto trading volumes have exploded. The Bitstamp acquisition further strengthens its capabilities in the space, giving users expanded access to global crypto markets and institutional trading tools.
Meanwhile, market volatility triggered by newly announced trade tariffs from former President Donald Trump has fueled a spike in equity and options trading on the platform. In Q1 2025 alone, Robinhood saw $413 billion in equity trading volume and $500 million in options — figures expected to rise in the current quarter.
These combined factors — crypto growth, index inclusion buzz, high user activity, and revenue expansion — make Robinhood one of the most closely watched stocks in the financial sector today.
Jim Cramer Calls It “Memed”
Even CNBC’s Jim Cramer weighed in this week, posting a single-word reaction — “Memed” — on X. While cryptic, the remark likely references the stock’s viral popularity and echoes of past meme stock surges. Still, this time around, the numbers suggest Robinhood’s growth is more than just hype.
Whether or not Robinhood joins the S&P 500 this month, it’s clear that HOOD is rewriting its story — from a pandemic-era upstart to a potentially dominant player in the future of finance.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Readers should consult with a licensed financial advisor before making any investment decisions.