What Makes Robinhood (HOOD) a Good Investment?

Columbia Threadneedle Investments, an investment management company, released its “Columbia Global Technology Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets continued their upward journey in the third quarter, driven by strong earnings growth, continued enthusiasm around artificial intelligence (AI), and easing trade tensions. The composite returned 12.06% in the quarter, compared to the S&P Global 1200 Information Technology Index’s 12.82% return.  Positive stock selection drove the relative performance of the fund in the quarter. In addition, you can check the fund’s top 5 holdings for its best picks for 2025.

In its third-quarter 2025 investor letter, Columbia Global Technology Growth Fund 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 1.75%, and its shares gained 503.54% of their value over the last 52 weeks. On October 31, 2025, Robinhood Markets, Inc. (NASDAQ:HOOD) stock closed at $146.78 per share, with a market capitalization of $130.44 billion.

Columbia Global Technology Growth Fund stated the following regarding Robinhood Markets, Inc. (NASDAQ:HOOD) in its third quarter 2025 investor letter:

"Online brokerage platform Robinhood Markets, Inc. (NASDAQ:HOOD) was added to the S&P 500 Index in September, marking a key achievement for the fintech company that had once been dismissed as a meme stock trading platform. The company also reported strong quarterly results featuring significant growth in transaction-based revenues, as market volatility fueled robust trading activity across equities, options and cryptocurrencies. The company’s ongoing discussions with regulators regarding international expansion are supportive of an expanding addressable market, and its strategic push into tokenized assets present an opportunity for the company to capitalize on emerging trends in digital finance."

Robinhood Markets, Inc. (NASDAQ:HOOD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 85 hedge fund portfolios held Robinhood Markets, Inc. (NASDAQ:HOOD) at the end of the second quarter, compared to 76 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 the list of stocks Jim Cramer highlighted. In addition, please check out our hedge fund investor letters Q3 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.