In 2025, Robinhood Markets (HOOD) wasn’t just another fintech stock; it was one of the standout performers on Wall Street. After years of volatility and skepticism following its 2021 IPO, Robinhood’s shares soared meteorically over the year, amid renewed optimism.
The S&P 500 Index ($SPX) financials sector has kept pace with the broader market and ranks as the fourth-best performing sector. Within this group, Robinhood Markets topped the list with 215% gains year-to-date (YTD). Behind the headline gains were improving fundamentals that transformed HOOD from a meme-era darling into a serious fintech contender in the eyes of many investors.
However, with broader market uncertainties on the horizon, let’s analyze whether this red-hot run still has room to run or if caution is warranted.
Headquartered in Menlo Park, California, financial services company Robinhood is known for its mobile-first brokerage platform that democratizes access to investing by offering commission-free trades of stocks, ETFs, options, cryptocurrencies and more to retail investors. The company has grown into a large-cap stock with a market cap of around $106.2 billion.
In 2025, Robinhood’s stock price delivered a standout performance that captured investors’ attention, turning one of the most closely watched fintech names into a top market performer. The stock has registered a peak of $153.86 on Oct. 6, while the total past 52-week return stands at 200.21%, underscoring strong upward momentum. And, its 215% YTD gain is far outpacing the broader S&P 500 17.48% gains.
The stock’s rally reflected renewed investor confidence tied to booming trading activity, expanding revenue streams, and major milestones like its inclusion in the S&P 500 and rapid subscriber growth. While the stock is down 31.2% from its 52-week high, it is one of the most compelling stories in the financial sector this year.
The stock is currently trading at 60.48 times forward earnings, which is higher than the sector median.
Robinhood released its third-quarter 2025 earnings on Nov. 5, reporting one of its strongest quarters in company history and substantially outperforming year-ago results. The company posted record total net revenues of $1.3 billion, doubling with a 100% year-over-year (YOY) rise. This remarkable expansion was driven by broad-based growth across Robinhood’s diversified revenue streams, including transaction-based revenue, net interest income, and subscription services.
