Robinhood Joins S&P 500 as Cramer Sees Upside Despite Near-Term Pullback

Robinhood Markets, Inc. (NASDAQ:HOOD) is one of the 12 Jim Cramer Stock Picks this Week.

Cramer anticipates a higher movement in the stock following the announcement of its inclusion by S&P Dow Jones Indices.

In its Q2 earnings call transcript, released on July 31, 2025, Robinhood Markets, Inc. (NASDAQ:HOOD) reported reaching $989 million in revenue, a 45% year-over-year growth. The increase is attributed to strong business growth in addition to increased trading volumes. The successful acquisition of Bitstamp during the quarter is anticipated to enhance the company’s institutional business, strengthening its global financial ecosystem.

Later, on September 5, 2025, Reuters reported the joining of Robinhood Markets, Inc. (NASDAQ:HOOD) in the benchmark S&P 500. The company will be included upon the exit of the casino operator, Caesars Entertainment. Pointing to this historic moment, Jim Cramer has made the following statement.

“I expect them (AppLovin and Robinhood) to move higher over time, but they might pull back now that they’ve gotten a boost”

Institutional interest in the stock stands strong, with 85 hedge funds holding ownership stakes in the company.

Founded in 2013, Robinhood Markets, Inc. (NASDAQ:HOOD) is a financial services company known for pioneering commission-free stock, ETF, and cryptocurrency trading. The California-based company’s mission is to democratize finance for all. Through its mobile-first platform, it primarily targets younger investors.

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