Robinhood Markets, Inc. (HOOD): Among Stocks That Could 10X Over the Next 2 Years

By Zarah Hamid | April 21, 2025, 10:39 PM

We recently published a list of 9 Stocks That Could 10X Over the Next 2 Years. In this article, we are going to take a look at where Robinhood Markets, Inc. (NASDAQ:HOOD) stands against other stocks that could 10X over the next 2 years.

US Tariffs and the Stock Market Turmoil

While tariffs from the US government disrupted international trade, they also led to uncertainty and turbulence in financial markets, with the  S&P 500 closing below 5,000 points for the first time in nearly a year. An analysis from the World Economic Forum regarding how tariffs cause volatility in financial markets was stated in the words of Santiago Fernández de Lis, Head of Regulation, BBVA, as follows:

“The main impact of trade tensions on global markets is through uncertainty. When major economies—like the US and China—engage in a tariff war, investors fear slower global trade, disrupted supply chains and weakened corporate profits. This anxiety translates into market volatility. Companies delay investment decisions, consumers lose confidence, and currencies fluctuate wildly.”

However, global markets rebounded later as the US president made an announcement of a 90-day pause on additional higher tariffs that had to impact almost 80 countries, with the exception of China. In the case of China, the new president is convinced to keep high tariffs as he stated that these tariffs would be increased to 125% from 104% following China’s announcement of additional retaliatory tariffs against the US.

Following this pause in tariffs, Wall Street witnessed a sigh of relief. The S&P 500 rose 9.52%, thereby marking its biggest one-day gain since 2008. The Dow Jones Industrial Average climbed almost 7.87%  to close at 40,608.45. Simultaneously, the tech-heavy Nasdaq soared 12.2% and had its best day since January 2001.

Our Methodology

To compile our list of the 9 stocks that could 10X over the next 2 years, we first carried out a consensus by sifting through multiple similar articles online. Once we had an extended list of the stocks that could 10X over the next 2 years, we shortlisted the top 9 stocks based on the number of hedge funds that have stakes in them, as of Q4 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Robinhood Markets, Inc. (HOOD): Among Stocks That Could 10X Over the Next 2 Years
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Robinhood Markets, Inc. (NASDAQ:HOOD)

Number of Hedge Fund Holders: 79

Robinhood Markets, Inc. (NASDAQ:HOOD) is an American financial services company that allows trading stocks, options, crypto, and futures, including options on futures, swaps, and even contracts. It was the first US retail broker to offer commission-free stock trading with no account minimums.

Deutsche Bank analyst Brian Bedell has reiterated a Buy rating on the stock, noting the firm’s plans for offers to attract active traders better. The analyst slightly increased the price target by $1 to $62, although he had previously lowered the price target to $61 from $75. He saw continued strong momentum in trading volumes across equities and options based on the firm’s promising performance in February. February operating data from the firm revealed that its Assets Under Custody (AUC) at the end of the month were $187 billion, up 58% year-over-year. Simultaneously, Net Deposits were $4.8 billion in February, recording a 28% annualized growth rate relative to January 2025 AUC. On the contrary, the price targets for the stock were lowered to $70 from $75 at Piper Sandler and to $45 from $76 at Barclays. Concerns mentioned by analysts at these firms included brokers currently subject to ‘a more intense headwind from a lower in-period Fed funds and futures curve’.

Overall, HOOD ranks 9th on our list of stocks that could 10X over the next 2 years. As we acknowledge the potential of HOOD as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than HOOD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

 

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

 

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

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