Jim Cramer On Robinhood Markets, Inc. (HOOD): “Great Maturity, New Products, and Capturing Billions”

Insider Monkey
08 Mar

We recently published a list of Jim Cramer Discusses These 14 Stocks & Zero Day Options. In this article, we are going to take a look at where Robinhood Markets, Inc. (NASDAQ:HOOD) stands against other stocks that Jim Cramer discusses with insights into Zero Day Options.

In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer commented on how day traders were trading the shares of Wall Street’s favorite AI GPU stock. He recalled a conversation that he had with Vlad Tenev, who’s the CEO of the most popular stock trading platform in the US. Cramer shared that the number of zero-day options that were actually being traded for the stock around the time of its fiscal fourth-quarter earnings release meant that the options, instead of the fundamentals, were driving the share price.

He also marveled at the fact that trading these options came with little risk. According to Cramer: “And what’s amazing is this it actually makes sense! I mean when I was with [Vlad Tenev], you don’t want, time degradations, you can actually put that bet on, this morning. And if it doesn’t work, doesn’t work.” He added: “There are many professionals who are using zero-day through Robinhood because they’ve got the most, they’ve got the cheapest market.”

The CNBC TV show host also commented on how the GPU company needed to “get away from this five clients syndrome.” He believes that if the firm’s only clients are going to be mega-cap technology giants then “We’re all gonna just keep saying, are they ordering? Are they ordering? If you have an order book that includes say, many countries, uh that’d be great.”

Cramer’s co-host David Faber asked him about his recent discussion with Trump advisor Peter Navarro, here’s what Cramer said:

“Okay, so it’s really interesting, really interesting to say that because the larger takeaway was missed. It was meant to be a stop to the Mag 7. It was meant to be, listen, we’re gonna protect you from the honey pot, that so many people, we wake up all the time and we see ‘oh, billion dollar fine by so and so’. . . so Peter thought that it would be welcomed by the tech companies because they’re the ones, they’ve been complaining about it endlessly, but it did not resonate like that. And I think that one of the part is because there was like, oh how about the copper tariff?”

Our Methodology

To make our list of the stocks that Jim Cramer talked about, we listed down all the stocks he mentioned during CNBC’s Squawk on the Street aired on February 26th.

For these stocks, we also mentioned the number of hedge fund investors. 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Robinhood Markets, Inc. (NASDAQ:HOOD)

Number of Hedge Fund Holders In Q4 2024: 79

Robinhood Markets, Inc. (NASDAQ:HOOD) is a software company that runs the most popular retail stock trading platform in America. The firm’s fortunes have mirrored the growth in retail stock trading as its shares have gained 190% since being publicly listed last year. Robinhood Markets, Inc. (NASDAQ:HOOD) has struggled in 2025 with the stock down by 29% since mid-February after the firm disclosed a $27 million hit to its net income due to a bid to grow users. Here’s what Cramer said about Robinhood Markets, Inc. (NASDAQ:HOOD):

“Yes, I think that the predictive is very good . . .thinking about who do you think will win for President and have a deep market for that. . . .the bigger picture of Robinhood is one of great maturity. And they’ve developed a lot of products to be able to capture the eighty four to eighty six billion dollars that’s being transferred from Baby Boomers to the different other generations. They have been able to get clients, like the GameStop clients, and then, actually take them for many years and then move them up. They have fantastic 3% IRA match if you there. I was very impressed. And they’re engineers. And their site is so exciting not in the way it used to be with the balloons, but in terms of like if you want to understand futures, you want to trade on their site. Uh, there are many things that, crypto, you wanna trade on their site. But their options pages are magnificient and really simple. The other brokerages have really dropped the ball. They don’t understand you have to have superior engineering and that’s what Vlad understands.

“[When asked if was beyond just the marketing] I totally do. I think it’s, I think their website is fabulous. They’ve got so many good things. The gold part is good. They’ve got many smart things.

“I think you buy it. I think that that’s also, it’s also part of the, the Bitcoin trade because they have a lot of Bitcoin. They do trade a lot of crypto.”

Overall, HOOD ranks 1st on our list of stocks that Jim Cramer discusses with insights into Zero Day Options. While we acknowledge the potential of HOOD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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