Love it or hate it, the Robinhood Markets has democratized the investing process for millions of retail investors. In 2024, nearly 12 million investors used the company’s trading platform. And it’s safe to say that the company is reaching an untapped market.
Approximately 75% of the company’s investors are either in the Millennial or Gen-Z demographic and about 35% of the platform users earn between $50K and $100K per year.
However, the ability to buy fractional shares without paying commissions has a certain appeal. That’s reflected in the company's $1.9 billion in revenue through the first three quarters of 2024, which has already surpassed the revenue for all of 2023.
Many investors may dismiss the company as the home of traders who move quickly in and out of meme stocks. So, it may surprise you that over 50% of the top stocks trending on the platform are those of large-cap companies, including the Magnificent 7 stocks.
The Russell 2000 index, a proxy for small-cap stocks, generated a return of 16% in 2024. Some of that enthusiasm stemmed from the Federal Reserve’s decision to lower interest rates, which disproportionately impacted many smaller companies that may have to rely on borrowing to fund their operations.
Although the pace of those rate cuts is likely to be smaller in 2025 than first expected, the trend is still in favor of lower rates throughout the year. And, if the economy gets a boost through corporate tax cuts and deregulation, the gains may be even larger.
But what specific stocks are they buying? In this special presentation we're highlighting seven of the most popular small-cap stocks that are trending on the Robinhood platform.
We empower individual investors to make better trading decisions by providing real-time financial information and objective market research.
MarketBeat is a small business and email is a crucial tool for us to share information, news, trading ideas and financial products and services with our subscribers (that's you!).
If you have questions about your subscription, feel free to contact our U.S. based support team via email at contact@marketbeat.com.
