Robinhood Stock Is Crushing the S&P 500 in 2025, but I'm Worried About This 1 Thing
The S&P 500 (SNPINDEX: ^GSPC) is off to a bumpy start to 2025. It was down by as much as 15% year to date in April, but it has since staged a recovery and trimmed the loss to 4%. The volatility was triggered by President Donald Trump's "Liberation Day" tariffs, which investors fear might lead to an economic slowdown.But Robinhood Markets (NASDAQ: HOOD) thrives on volatility. It operates a popular trading platform where investors can buy and sell stocks, options, futures, and cryptocurrencies, so large swings in the broader market can result in significant commission revenue for the company. As a result, Robinhood stock is up by 29% in 2025 so far, crushing the S&P 500.However, cracks are starting to appear in one of Robinhood's biggest growth areas, so here's why I'm worried its stock could lose its recent momentum.Continue reading
The S&P 500 (SNPINDEX: ^GSPC) is off to a bumpy start to 2025. It was down by as much as 15% year to date in April, but it has since staged a recovery and trimmed the loss to 4%. The volatility was triggered by President Donald Trump's "Liberation Day" tariffs, which investors fear might lead to an economic slowdown.
But Robinhood Markets (NASDAQ: HOOD) thrives on volatility. It operates a popular trading platform where investors can buy and sell stocks, options, futures, and cryptocurrencies, so large swings in the broader market can result in significant commission revenue for the company. As a result, Robinhood stock is up by 29% in 2025 so far, crushing the S&P 500.
However, cracks are starting to appear in one of Robinhood's biggest growth areas, so here's why I'm worried its stock could lose its recent momentum.
