Jim Cramer on Robinhood: "Don't Get Caught up in the Hype"

Robinhood Markets, Inc. (NASDAQ:HOOD) is one of the stocks in Jim Cramer’s spotlight. A caller asked Cramer what he thinks the company would do in the long term. Cramer stated:

“I want you to take out your cost basis. It’s had a major move. Robinhood has become what I call a meme stock. It means that it’s just done, it’s just trading off of enthusiasm right now. When I see trading off enthusiasm, what’s the matter with that?

"Well, enthusiasm can cool. I like trading off of fundamentals. Now, Robinhood is doing well, but they have really, let’s say, become very big cheerleaders for themselves. Nothing the matter with that, but don’t get caught up in the hype. Take your cost basis out, and then we can deal with, let’s say, letting it run situation, but not until then.”

Robinhood (NASDAQ:HOOD) provides a financial platform for trading stocks, ETFs, crypto, and more, with features like margin investing, instant withdrawals, and retirement accounts. The company also offers educational tools, digital wallets, and a crypto marketplace.

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