Jim Cramer on Robinhood: "It Seems to Have Captured Young People"

Robinhood Markets, Inc. (NASDAQ:HOOD) is one of the stocks on Jim Cramer’s radar. Cramer noted that the company is quite popular among the youth, as he said:

“Do I have to describe Robinhood to you? It’s an app. No, it’s a bank. No, it’s a repository of wealth of the millennials, whatever you want to call it. Robinhood has 25 million accounts, and it offers ETFs, options, gold, and crypto. It came out of nowhere. This company was worth $11 billion two years ago.  Now it’s $88 billion. Again, incredibly profitable. Out of nowhere, it seems to have captured young people who would otherwise not bother to invest. You know what I say? Hallelujah.”

Robinhood (NASDAQ:HOOD) provides a financial services platform for trading stocks, ETFs, options, and cryptocurrencies, along with educational tools and cash management features. Cramer mentioned the company on July 11 and said:

“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.”

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