Do You Believe in the Upside Growth Potential of Robinhood Markets (HOOD)?

Springview Capital Management, an investment management company, released its second-quarter 2025 investor letter. A copy of the same can be downloaded here. Limited partners returned +17.8% in the second quarter, bringing the year-to-date return to +15.7% compared to the S&P 500’s +10.9% return in the quarter and +6.2% in the first half, including dividends. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its second-quarter 2025 investor letter, Springview Capital Management highlighted stocks such as Robinhood Markets, Inc. (NASDAQ:HOOD). Robinhood Markets, Inc. (NASDAQ:HOOD) is a financial services platform that allows users to invest in stocks, exchange-traded funds (ETFs), American depository receipts, options, gold, and cryptocurrencies. The one-month return of Robinhood Markets, Inc. (NASDAQ:HOOD) was 14.68%, and its shares gained 518.28% of their value over the last 52 weeks. On August 8, 2025, Robinhood Markets, Inc. (NASDAQ:HOOD) stock closed at $114.63 per share, with a market capitalization of $101.869 billion.

Springview Capital Management stated the following regarding Robinhood Markets, Inc. (NASDAQ:HOOD) in its second quarter 2025 investor letter:

"Robinhood Markets, Inc. (NASDAQ:HOOD) has been the Partnership’s most profitable investment to date. We began accumulating shares in May 2024, driven by our belief that the company was innovating rapidly, gaining market share, and winning customer loyalty in a large and growing market. At the time, the stock traded at a steep price-to-book discount compared to larger, slower-growing peers like Charles Schwab, Interactive Brokers, and Coinbase—an anomaly that astonished us.

We attributed this discount to lingering stigma from Robinhood’s controversial role in the GameStop “meme stock” saga, during which the company faced a collateral shortfall that nearly upended the business. But that was then. We believed investors had failed to recognize the significant operational and financial progress the company had made.

Where others saw a meme stock, we saw a founder-led business with a powerful brand, a sticky and expanding user base, ample excess capital, and strong execution. We began buying shares for just over $18, and our cost basis is under $20 per share. As of this writing, Robinhood trades around $106 per share..." (Click here to read the full text)

Robinhood Markets, Inc. (NASDAQ:HOOD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 76 hedge fund portfolios held Robinhood Markets, Inc. (NASDAQ:HOOD) at the end of the first quarter, which was 79 in the previous quarter.  Robinhood Markets, Inc. (NASDAQ: HOOD) reported revenues of $989 million in Q2 2025, indicating a 45% year-over-year growth driven by strong business performance. While we acknowledge the potential of Robinhood Markets, Inc. (NASDAQ:HOOD) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Robinhood Markets, Inc. (NASDAQ:HOOD) and shared Artisan Mid Cap Fund's views on the company. Ashva Capital Management highlighted Robinhood Markets, Inc. (NASDAQ:HOOD) in its Q2 2025 investor letter and views it as a disruptive force in retail finance. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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