Key Points

• Robinhood has a paid subscriber base of 3.2 million users.

• The online brokerage generated $927 million in net revenue in Q1 2025.

• The company has $2.2 billion in net cash on its balance sheet.

• 10 stocks we like better than Robinhood Markets ›

In January, I highlighted Robinhood Markets (NASDAQ: HOOD) as a stock to buy for long-term investors, despite doubts about whether the company could do more than disrupt the brokerage industry. Back then, it was trading around $40 per share, and many still questioned its staying power.

Fast-forward six months -- not yet the long term -- and the stock has surged past $100, lifting its market capitalization to nearly $90 billion, resulting in a remarkable 173% increase year to date. With shares now near all-time highs, let's dive into what's driving this momentum, what lies ahead, what could go wrong, and whether the stock still makes sense for investors.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Here's how Robinhood is growing so quickly

Robinhood delivered standout Q1 2025 results, with revenue soaring 50% year over year to $927 million. The biggest driver was a 77% surge in transaction-based revenue, which climbed to $583 million.

Robinhood's second-largest revenue stream, net interest income, rose 14% to $290 million, fueled by a larger base of interest-earning assets and a continued ramp-up in securities lending.

Moreover, the brokerage gained $2 billion in net deposits in the quarter to a record $18 billion, and Robinhood Gold, the company's subscription offering that costs $5 per month or $50 annually, saw subscribers nearly double year over year from 1.7 million to 3.2 million.

Robinhood CEO Vlad Tenev summed up the growth on the Q1 earnings call: "Customers are not only trading more with us, but they're entrusting us with more of their assets."

As for how its growth is translating to the bottom line, Robinhood produced $336 million in net income, an impressive increase of 114% year over year.

HOOD Revenue (Quarterly) data by YCharts

Can Robinhood continue to grow?

As for where Robinhood goes from here, the company acquired TradePMR, a trading platform designed for independent registered investment advisors, for $300 million in cash and stock. The deal, which allows Robinhood entry into the wealth management sector, is another step in diversifying its business.

Additionally, Robinhood recently closed on its $200 million acquisition of Bitstamp, the world's longest-running cryptocurrency exchange, to broaden its addressable market outside of the U.S.

"Our 10-year arc, our long-term arc, is to build the No. 1 global financial ecosystem," Tenev added on Robinhood's most recent earnings call. "That means expanding our business from retail only, which it pretty much is now, to also serving businesses and institutions, and also expanding from primarily U.S. to being a full global platform serving customers everywhere."

Notably, Robinhood has nine different businesses that each generate at least $100 million in annualized revenue, nearly twice as many as a couple of years ago. Tenev also mentioned other opportunities for growth, including building out 24-hour trading, 401(k) administration for businesses, and employee stock plan administration for public companies.

Here's what could go wrong for Robinhood

As of now, considering Robinhood's high growth, profitability, and clean balance sheet with $2.2 billion in net cash, you'd be hard pressed to find any problems with its business. However, the stock can be a different story.

For high-growth companies like Robinhood, their stocks typically have two issues: share dilution and valuation.

Since its IPO, Robinhood's share count has risen by 5.6%, which dilutes investors' ownership stake. The good news is that management is addressing the concern, lowering share-based compensation from $871 million in 2023 to $304 million in 2024. Additionally, management recently increased its share repurchase authorization from $1 billion to $1.5 billion, or nearly all of its $1.6 billion in trailing 12 months of net income. According to management, the buybacks will decrease its share count by approximately 1% in 2025.

As for the stock's valuation, Robinhood now trades at roughly 67 times forward earnings estimates, near an all-time high.

That's a steep price tag for a company still pouring resources into growth and customer acquisition. While Robinhood's roadmap includes promising new products that could eventually justify the valuation, many remain early stage ideas with no guarantee they will turn into meaningful profits.

HOOD Shares Outstanding data by YCharts

Is Robinhood stock a buy?

Robinhood continues to prove its doubters wrong. With 75% of its 25 million funded accounts coming from members of the millennial and Gen Z generations, the platform is well-positioned for long-term growth as those users get older and build wealth.

Still, with shares near all-time highs and valuation stretched, now may not be the best entry point. Long-term investors who believe in the vision might consider holding or dollar-cost averaging, i.e., investing a set amount at predetermined times. But chasing the stock after its massive run comes with real risk for future returns.

Should you invest $1,000 in Robinhood Markets right now?

Before you buy stock in Robinhood Markets, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Robinhood Markets wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $636,774!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,942!*

Now, it’s worth noting Stock Advisor’s total average return is 1,040% — a market-crushing outperformance compared to 182% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 21, 2025

Collin Brantmeyer has positions in Robinhood Markets. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

• My 4-year-old daughter will start primary school in September. She's excited, but I'm dreading it.
• It seems like moments ago that I brought home a baby from hospital, now she's growing up so fast.
• I feel like this is the beginning of the rest of her life and I'm not ready for the change.

'I will need a laptop when I start school,' my 4-year-old daughter confidently informed me.

She is due to start school in September and will be going to the lovely, tiny village school that is minutes away from our house in the UK.

I knew she'd need a pencil case and school shoes, but I really wasn't expecting her to need a laptop.

When I tried to reason with her, and point out it was unlikely the school would ask 4-year-olds to have their own computer, she answered, 'It's for my homework.'

That was that. She'd heard so much about 'big' school from older relatives, that she was convinced she knew what she was getting herself in to, despite me trying to tell her I thought it was unlikely the youngest classes were given homework.

Looking at her face, full of excitement, with messy hair and remnants of nursery school detritus on it, my heart broke slightly as I imagined what the next few weeks, months, and years would look like.

Things are changing

While my daughter sees school as her biggest adventure so far, I see it as the start of the rest of her life. And with it comes the inevitable highs and lows of growing up.

Along the way she's going to experience the joy of close friendships, the pain of friendship break-ups, the excitement of a school trip and, yes, the slog of homework.

After primary school, there'll be secondary school, maybe university, and a career to follow.

There'll be Sunday evening battles over getting bags ready for the school week, carefully planned camps to tide over the long summer break, and playdates with people who, I hope, will become some of our closest friends but who we haven't even met yet.

She is ready, I'm not

She still feels so small, but is also so determined to grow up in a hurry. She can't wait to be at school and keeps gleefully reminding her younger brother that she won't be at nursery school with him this year.

She says, "I am going to school and you are not, because you are only a baby."

Her indignant younger brother, replies, "Not a baby."

She is ready to leave him behind and move on, to a place where she's going to be the smallest fish in a large pond.

My heart is aching

I don't know when the novelty and excitement will wear off, but when it does I can't think of a way to sugarcoat the pill that this is her life for years to come.

But I also know that along the way I will have the privilege to witness her grow into a wonderful human being- shaped by everything life throws at her, beginning in the next few weeks and continuing for years.

Imagining my tiny girl in a uniform slightly too big for her, holding my hand nervously in the playground on her first day, my heart contracts.

I know that she is more than ready for this step, and as a parent, I have to let her fly and just be there to catch her when or if she falls. However, I will not be, under any circumstances, buying her a laptop.

Key Points

• Robinhood has grown rapidly over the past few years.

• Its ecosystem is expanding and economies of scale are kicking in.

• It still looks reasonably valued relative to its growth potential.

• 10 stocks we like better than Robinhood Markets ›

Robinhood's (NASDAQ: HOOD) stock has soared more than 350% over the past 12 months. That rally was driven by soaring stocks and rising crypto prices, which drew many retail investors back to its online trading platform and boosted its trading volumes.

Some investors might be reluctant to invest in Robinhood after those massive gains. However, it could still be worth buying before its next earnings report on July 30 for six simple reasons.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

1. It's expanding rapidly

From 2020 to 2024, Robinhood more than doubled its number of funded customers as its assets under custody (AUC) more than tripled. It achieved that growth trajectory even through a grueling slowdown in 2022 as rising interest rates chilled the stock and crypto markets. Its revenue grew at a robust compound annual growth rate (CAGR) of 32.5%.

Metric	2020	2021	2022	2023	2024
Funded customers	12.5 million	22.7 million	23.0 million	23.4 million	25.2 million
AUC	$63 billion	$98 billion	$62 billion	$103 billion	$193 billion
Revenue growth	245%	89%	(25%)	37%	58%

Data source: Robinhood.

In the first quarter of 2025, Robinhood's number of funded customers rose 8% year over year to 25.8 million. Its total platform assets (a new metric that combines its AUC with the assets it gained from its acquisition of TradePMR last November) surged 70% to $221 billion.

If the Federal Reserve cuts interest rates again this year, more investors should pivot back toward stocks, options, and cryptocurrencies. That rotation should fuel its near-term growth.

2. Fewer regulatory challenges

Robinhood became a popular platform for retail investors because it offered commission-free trades. It can offer fee-free trades because it bundles together all of its orders and sells them to high-frequency trading firms that can squeeze slim profits out of those bulk trades.

That "payment for order flow" (PFOF) model attracted a lot of scrutiny from the Securities and Exchange Commission (SEC) under Chairman Gary Gensler from 2021 to 2025. Some investors even speculated the SEC could completely ban PFOF trades and cripple Robinhood's core business.

But that ban never happened, and Gensler's successor, Paul Atkins, recently withdrew all of the SEC's proposed regulations against PFOF trades. As those regulatory headwinds dissipate, Robinhood should have a clearer path for expanding its commission-free trading platform.

3. It's gaining more subscriptions

Robinhood rolled out its premium Gold tier nearly nine years ago. For $5 a month or $50 a year, its members get $1,000 in interest-free margin, lower margin rates, higher interest rates on uninvested cash, bonuses on taxable deposits and IRA contributions, higher limits on instant deposits, access to Level II trading data, and other perks.

In the first quarter of 2025, its number of Gold subscribers grew 90% year over year to 3.2 million as its subscription revenue rose 65% to $38 million. That only accounted for 4% of Robinhood's top line, but it could gradually diversify its business away from its more volatile transaction-based revenues.

4. Robinhood's ecosystem is expanding

Over the past few years, Robinhood expanded its ecosystem with more crypto trading, options trading, and card-based banking services. It also rolled out AI-powered portfolio management tools, and it allowed its investors to trade "tokenized" versions (blockchain-based representations of underlying assets) of U.S. Treasuries, stocks, and ETFs.

Robinhood recently added private start-ups like OpenAI and SpaceX to that tokenization strategy. Investors don't get equity in those start-ups through those tokens -- which are pinned to a "special purpose vehicle" that holds those private shares -- but it grants them some indirect exposure ahead of their public debuts.

5. Its margins are improving

From 2020 to 2024, Robinhood's gross margin rose from 88% to 94.4%. Its adjusted EBITDA margin -- which turned red in 2021 and 2022 -- jumped from 2.3% to 48.4%.

Metric	2020	2021	2022	2023	2024
Gross margin	88%	91.3%	86.8%	92.2%	94.4%
Adjusted EBITDA margin	2.3%	(89%)	(6.9%)	28.7%	48.4%

Data source: Robinhood, Macrotrends.

That expansion was driven by a reduction in its stock-based compensation expenses (the primary weight on its collapsing margins in 2021), its growth in higher-margin subscription revenues, and rising interest income from its cash sweep and margin lending services. It also generated a higher mix of its revenues from its higher-margin crypto and options trades (as opposed to its lower-margin equity trades) as economies of scale kicked in.

6. The valuation is reasonable relative to its growth

From 2024 to 2027, analysts expect Robinhood's revenue to grow at a CAGR of 18% as its adjusted EBITDA rises at a CAGR of 23%. We should take those estimates with a grain of salt, but it could continue to pull investors away from traditional brokerages with its free trades, gamified approach to investing, and expanding lineup of fintech services.

With an enterprise value of $91.3 billion, Robinhood's stock might seem a bit pricey at 50 times this year's adjusted EBITDA. But if you expect the current bull market to generate strong tailwinds for its business, it's a good idea to pick up some shares before its next earnings report.

Should you invest $1,000 in Robinhood Markets right now?

Before you buy stock in Robinhood Markets, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Robinhood Markets wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,056,790!*

Now, it’s worth noting Stock Advisor’s total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Key Points

• Robinhood is now offering tokenized stocks to European investors, with plans to offer them to U.S. investors soon.

• Tokenized stocks are blockchain versions of traditional stocks, and can be traded just like crypto tokens.

• Before investing in tokenized stocks, it's important to read all the fine print, to make sure you understand what you actually own.

• 10 stocks we like better than Robinhood Markets ›

Tokenization has been one of the hottest buzzwords in the crypto industry for the past 12 months. Now we're finally starting to see what can happen when blockchain technology meets traditional stock market investing.

On June 30, Robinhood Markets (NASDAQ: HOOD) shook up the financial world with the launch of tokenized stocks for retail investors. According to Robinhood Chief Executive Officer Vlad Tenev, these tokenized stocks represent the greatest innovation in capital markets in decades. But what, exactly, are they? And what do they mean for investors?

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

What are tokenized stocks?

Tokenization refers to the transformation of real-world assets into digital assets that live on the blockchain. Ownership in that asset is represented by a digital token that can be traded just like any crypto token.

In this case, the real-world assets being transformed are stocks, and the place to trade them is on Robinhood's trading platform. For now, trading in these tokenized stocks will take place 24/5, but according to Robinhood, trading will soon be 24/7.

It can be helpful to think of these tokenized stocks as digital twins. Robinhood buys a real-world stock, and then, with a little blockchain alchemy, transforms that into a digital token. In theory, this digital token will then mimic the price action of the real-world stock on a 1:1 basis. If the value of Company X goes up by 10% in one day, then the value of your token will go up by 10% as well.

Pros

Tokenization provides a number of advantages for retail investors. For one, investors get the enhanced liquidity of being able to trade these tokens on the blockchain. Second, they get access to the speed, efficiency, security, and transparency of blockchain technology. Third, they can trade tiny fractional shares of any company's stock that has been tokenized.

According to Robinhood, tokenized stocks will modernize the traditional system of buying and selling stocks. If you've ever been frustrated by not being able to trade equities on the weekend or on holidays, then tokenized stocks represent a possible solution. In addition, once you have the token, you can then do different things with it that simply aren't possible in the world of traditional finance, all thanks to the power of decentralized finance.

Robinhood is launching its tokenized stock offerings in Europe first, as a way of giving European investors access to the U.S. market. Robinhood says that more than 200 tokenized stocks and exchange-traded funds (ETFs) will be available for trading on its platform. In the future, U.S. investors might be buying tokenized stocks from Europe, Asia, or Latin America.

Cons

However, there are drawbacks to tokenized stocks. The primary goal is to give investors exposure to the price of the underlying real-world stock. They do not confer any traditional stock ownership privileges. There are no voting rights, for example. And if the stock pays dividends, you may not receive those dividends.

You really have to read the fine print. For example, Robinhood says that its tokenized stocks will, indeed, pay dividends to investors. It depends on the blockchain smart contracts and how they are written for each token.

Things get more complex once you move beyond publicly traded companies. For example, it is also possible to create tokenized equity in private companies. At its June investor event in France, Robinhood actually gave away tokens for OpenAI and SpaceX, arguably two of the hottest privately held tech companies right now.

That caused a bit of an uproar. OpenAI, for example, immediately spoke out and said that these tokens are not OpenAI equity, and do not represent any type of ownership interest in the company. The company did not work with Robinhood on the launch of these tokens, and warned investors to be careful.

Robinhood says that the ultimate goal is to open up the world of private markets to retail investors. Why should ultra-wealthy accredited investors be the only ones who can invest early in a hot tech company? Why should venture capitalists be the primary gatekeepers to these companies?

That's potentially what makes tokenized stocks so revolutionary. They could lead to a transfer of power, money, and influence in the financial world. They could fundamentally change the way we think about the valuation of companies, both public and private. And they could forever blur the line between investing in public companies and investing in private companies.

Outlook for American investors

Right now, regulators in the U.S. are racing to keep up with the pace of crypto innovation. Until all the regulatory issues get worked out, these tokenized stocks from Robinhood will only be available to European investors.

The good news is that several crypto platforms, in competition with Robinhood, are now working on tokenized stocks for U.S. investors. My prediction is that tokenized stocks will be mainstream in the U.S. by the end of next year.

Now that the Trump administration has let the crypto genie out of the bottle, crypto innovation is taking place at an unprecedented scale and pace. Tokenized stocks are just the first in what should be a long line of new innovations for the individual investor.

Should you invest $1,000 in Robinhood Markets right now?

Before you buy stock in Robinhood Markets, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Robinhood Markets wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,056,790!*

Now, it’s worth noting Stock Advisor’s total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

Dominic Basulto has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

• Katherine Schwarzenegger says she hired a coach to prepare for her role as a stepmom to Chris Pratt's son.
• "It's a confusing thing to navigate where you fit in," Schwarzenegger said of the stepparent dynamic.
• Pratt added that stepparents often "don't end up getting the credit" they deserve.

Before Katherine Schwarzenegger married Chris Pratt, she hired a pro to help her prepare to become his son's stepmom.

During a joint appearance with Pratt on Tuesday's episode of the "Parenting & You with Dr. Shefali" podcast, Schwarzenegger spoke about family life and what it was like navigating a blended household.

Schwarzenegger married the "Jurassic World" actor in 2019 and has two daughters and a son with him. Pratt also shares a son, Jack, 12, with his ex-wife, Anna Faris.

"Number one thing I say is get a stepparenting therapist or stepparenting coach, because I got that right when we got engaged, and it's been incredibly helpful for me and also just understanding my role as a stepparent," Schwarzenegger told podcast host and clinical psychologist Shefali Tsabary.

The eldest daughter of Arnold Schwarzenegger and Maria Shriver added that her coach was "essential" in helping her learn how to communicate with her stepchild and think of herself as a stepparent.

"Because stepparenting, like parenting, has no handbook. Because I have the benefit of being in both roles, stepparenting is extra confusing because you aren't a parent, you're not a nanny, you're not an assistant. You have responsibilities in all of those areas, but you're not either of them. It's a confusing thing to navigate where you fit in," Schwarzenegger said.

She also said that every family has a different dynamic, since different people might have different levels of involvement in their stepchild's life.

"And when it comes to ego, that definitely pops up for me, for sure, and I always go back to understanding that this isn't about me, it's about the child," she said.

But thankfully, they — Schwarzenegger, Pratt, Faris, and Faris' husband Michael Barrett — "co-parent all very well, which is a huge blessing," she said.

Pratt, who was also a podcast guest, added that stepparenting reminds him of motion-capture acting, where actors wear specialized suits with sensors to animate digital characters, because stepparents "don't end up getting the credit" they deserve.

"If a parent is in there doing the hard work of creating structure for a child and holding children accountable — and it's not a biological child — it can feel thankless. But it's a really, really important job," Pratt said.

Schwarzenegger isn't the only Hollywood celebrity who has spoken up about being a stepparent or blending their families.

In March, Kate Hudson — who has three kids with three dads — said there are upsides to having big, blended families.

"It's like they have so much family. They've got multiple grandmas, multiple grandpas, multiple dads, and moms," Hudson said.

On a "Goop" podcast episode in April, Gwyneth Paltrow said that it was tough navigating the stepparent dynamic as it often felt "full of minefields."

"If I look back at my mistakes as a stepmother, I should have just treated them both like my kids way faster," Paltrow said.

Paltrow has two kids with her ex-husband Chris Martin, whom she divorced in 2016. In 2018, she married Brad Falchuk, who has two kids from his previous marriage.

Parenting experts previously told Business Insider about the common mistakes that stepparents make when trying to connect with their stepkids.

One mistake is trying to replace the stepchildren's biological parents.

"The stepparent isn't the biological parent, and it is OK to acknowledge that," Sarah Epstein, a licensed marriage and family therapist, told BI. "In fact, don't try to compete. Instead, speak directly to the child about their parent and encourage the relationship between the child and parent."

Representatives for Schwarzenegger and Pratt did not immediately respond to requests for comment sent by BI outside regular hours.

• My teens have been going to Disney theme parks since they were small.
• However, they have little patience for long lines or crowds, and I often skip my favorite things.
• I spent a day alone at Disneyland and did everything they won't do, and it was perfect.

I've spent more than a decade visiting Disney World and Disneyland with my family, and when they were small, my kids were game for the hustle and bustle. Now that they're teenagers, visits to theme parks with them are rare, and when they do tag along, there's not much they're interested in doing.

Recently, I spent a day at Disneyland alone and, in the words of Rapunzel, had the "best day ever." I visited the park from early morning until late at night and did the things my kids would have complained about having to do if they'd been with me. It was a great reminder that grown-ups need to do "kid things" by themselves sometimes, and I can't wait to do it again.

I did everything my kids complain about doing when we visit

At Disneyland, I prioritized rides I love but that often have long lines, especially old dark-ride-style attractions like Pinocchio's Daring Journey and Snow White's Enchanted Wish. You can't use Lightning Lane, Disneyland's skip-the-line pass that costs extra, on these rides, so my kids are usually out.

I did use the Lightning Lane pass I purchased to ride other attractions my kids claim to be sick of, like It's A Small World and Pirates of the Caribbean. Experiencing these longtime favorites whine-free was magical.

My kids also complain about parade-viewing at Disney parks, since you usually need to find a spot along the route at least 30 minutes before the parade starts and sit still to keep your place. On the day I visited, Disneyland had two parades, The Celebrate Happy Cavalcade during the day and Paint the Night — an incredible lighted parade — at night. For both, I grabbed myself a treat, found a seat, and thoroughly enjoyed waving to characters like Duffy Bear and the Disney Princesses from my front-row vantage point.

The day reminded me that grown-ups need to let loose sometimes, too

There were other little things I found delightful during my day, from being able to try snacks my kids may have turned their noses up at, like a chicken pot pie-topped baked potato that's part of Disneyland's 70th anniversary celebration menu, to standing in long lines to meet characters like Minnie Mouse. I rode more than 10 rides, met several characters, saw two parades and the evening fireworks show, and enjoyed yummy treats, like a mint julep and a green sugar-covered Gator Tail Churro.

I also faced a Disney fear — riding the new Tiana's Bayou Adventure attraction (formerly Splash Mountain). I never liked the 50-foot drop at Splash Mountain, so I'd put off riding the new version. Because I was alone, I decided to be brave. The ride was incredibly beautiful and I would absolutely face the drop (and getting soaked) again to spend more time with Princess Tiana and her friends.

Doing things I love to do helped me recharge and unwind

My day acting like a kid at Disneyland was a much-needed break from the responsibilities of mom life. What's more, the following day, as I flew home, my husband had an emergency appendectomy, and I landed amid a bit of chaos. It just goes to show that it's important to take little moments for yourself when you can, so you're ready to jump when the inevitable stresses of life show up.

Recharged and armed with a bit of pixie dust, I arrived home from Disneyland ready to support my husband and kids during a stressful time. My husband joked that I already deserve another Disneyland trip since mine ended with his medical emergency. While he's on the mend and doing great now, I just may take him up on that one day.

Key Points

• Interactive Brokers is one of the largest digital brokerages, executing roughly 3.45 million trades per day.

• The company recently released data about some of the most active stocks on its platform.

• In today's world of investing, it is important to understand sentiment and which stocks are popular.

• These 10 stocks could mint the next wave of millionaires ›

In today's market, while valuations are important, there are other factors impacting the movement of stocks, such as investment flows and sentiment. Part of this has to do with the rise of exchange-traded funds (ETFs), passive investing, and algorithmic trading. Understanding sentiment is important because it tells investors where flows are focused and what companies could be prone to big moves.

The large brokerage Interactive Brokers recently released data showing the 25 hottest stocks on its platform. The data is from July 8 and examines the preceding five business days. Here are the five most actively traded stocks on the platform.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

1. Tesla

It shouldn't surprise anyone to see Tesla (NASDAQ: TSLA) as the No. 1 stock on the list. The company and its outspoken CEO, Elon Musk, captivated the minds of investors as one of the first companies to make electric vehicles mainstream, and now as a company positioned to commercialize robotaxis and humanoid robots.

Musk's foray into politics this year created lots of controversy as well. With the stock trading at a meteoric valuation, Tesla became a battleground stock. Some think future initiatives like robotaxis and humanoid robots mean the sky is the limit. Others think the stock is a sell, especially with the core EV business struggling this year. While I wouldn't recommend shorting the stock because it has rarely traded on fundamentals, I remain on the sidelines due to the massive valuation.

2. Nvidia

Another obvious stock on this list is the artificial intelligence chip giant Nvidia (NASDAQ: NVDA), which is the largest publicly traded company and recently touched a $4 trillion market cap.

The market clearly thinks AI will revolutionize society as we know it. As the market opportunity gets bigger, investors are likely to keep driving up the price of Nvidia, which is the pre-eminent maker of the graphics processing units (GPUs) that train large language models (LLM).

Trading close to 38 times forward earnings, Nvidia is not that far above its five-year average. But below the surface are questions about the company's ability to maintain its monopoly and keep charging as much for chips as it has been. Nvidia also has other opportunities in autonomous driving and robotics that investors are starting to take notice of. I think investors can keep buying Nvidia but should probably take a dollar-cost averaging approach.

3. Circle

The stablecoin company and issuer of USDC, one of the largest stablecoins, has been quite popular since going public in June. Circle's (NYSE: CRCL) stock has already surged 554% from its initial public offering price of $31 per share.

Stablecoins, which are digital assets pegged to commodities or currencies, are viewed as the next major innovation in payments. Like cryptocurrencies, they have the ability to transfer money anywhere in the world, as long as the person or business has internet access. The associated fees are also lower than traditional payment methods. This makes stablecoins useful for people without access to the traditional banking system and for cross-border payments.

While stablecoins certainly have tremendous potential, Circle seems to have run too far too fast right now. USDC has a nearly $62 billion market cap, and Circle is now at about a $45 billion market cap. Furthermore, lower interest rates could decrease Circle's revenue, which is made by earning yield on the reserve currencies backing its stablecoins.

4. Palantir Technologies

The AI decision-making company Palantir Technologies (NASDAQ: PLTR) has appeared invincible, with its stock up 86% this year. The company's various platforms have the ability to pull in data from a variety of different sources, organize it in a central place, and derive insights using AI and machine learning. Palantir can examine potential scenarios, recommend actions, and then analyze the possible repercussions.

Palantir's platforms are easy to use for people who don't have experience working with LLMs. They can also track how certain data projects were created so they can be easily replicated or taken over by new managers. The company's products have been used by many different government departments and are resonating strongly with the business community as well.

Palantir trades at an even higher valuation than Tesla at 234 times forward earnings. I don't personally buy stocks at these kinds of valuations, but I also do see immense potential for the company. If you buy Palantir, I would once again take a dollar-cost-averaging approach.

5. Robinhood

The online brokerage Robinhood (NASDAQ: HOOD) blasted 138% higher this year, partly due to the crypto boom caused by President Donald Trump's administration's pro-crypto policies. The friendlier regulatory approach will make it easier for Robinhood to sell more cryptocurrencies on its platform, which could draw in more users and drive more activity among the company's existing user base.

As the pioneer of commission-free trading, Robinhood has never had issues bringing users to the platform. But more recently, the company has been able to better monetize users, primarily with the company's monthly $5 Robinhood Gold memberships, which offer users margin investing, competitive yield on brokerage cash, and many trading tools. The company has a very high conversion rate for new users signing up to become Gold members.

The Robinhood Gold Credit Card offers 3% cash back on all purchases, while the company also offers up to a 3% match on annual contributions to a Robinhood individual retirement account (IRA).

All of these features have made Robinhood an attractive place for people to conduct their banking activities. The stock isn't cheap, trading at 63 times forward earnings, but I do think the company has executed well and is driving an intriguing investment story.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $427,709!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $40,087!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $671,477!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of July 7, 2025

Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group, Nvidia, Palantir Technologies, and Tesla. The Motley Fool recommends the following options: long January 2027 $175 calls on Interactive Brokers Group and short January 2027 $185 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy.

Robinhood (NASDAQ: HOOD) shares are soaring as the company makes it more convenient for traders to engage with the app more frequently.

*Stock prices used were the afternoon prices of July 7, 2025. The video was published on July 9, 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Should you invest $1,000 in Robinhood Markets right now?

Before you buy stock in Robinhood Markets, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Robinhood Markets wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $687,764!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $980,723!*

Now, it’s worth noting Stock Advisor’s total average return is 1,048% — a market-crushing outperformance compared to 179% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 7, 2025

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Robinhood (NASDAQ: HOOD) stock is soaring amid rising engagement with investors.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

*Stock prices used were the afternoon prices of June 30, 2025. The video was published on July 2, 2025.

Should you invest $1,000 in Robinhood Markets right now?

Before you buy stock in Robinhood Markets, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Robinhood Markets wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $697,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $939,655!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 30, 2025

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Since last Friday, shares of the popular online brokerage Robinhood (NASDAQ: HOOD) had surged 13%, as of 12:36 p.m. ET Thursday. Investors believe the company will soon join the S&P 500 (SNPINDEX: ^GSPC).

A big potential upcoming step

Bank of America analysts led by Craig Siegenthaler said in a report this week that Robinhood is a "prime candidate" to join the broader benchmark S&P 500 index, which includes 500 of the largest companies in the U.S. with an unadjusted market cap of at least $20.5 billion, as of January 2025. The rebalancing is expected to be announced after the market closes tomorrow. Inclusion into the S&P 500 tends to be bullish because funds that track the index will have to purchase Robinhood, likely leading to significant inflows.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

"The S&P 500 and Russell 1000 are the two major benchmarks for our large-cap long-only clients," the Bank of America analysts said in their note, according to Bloomberg. "When companies are added, we experience significantly higher interest from long-only portfolio managers, which are essentially now forced to cover them and make a call."

Robinhood pioneered commission-free trading, which is now common practice among almost all major brokerages, and expanded access to investing for smaller, retail investors. The platform has become the go-to trading post for retail traders. At the end of April, Robinhood had close to 26 million funded customers and $232 billion in platform assets.

Is the stock a buy?

In the first quarter of 2025, Robinhood grew earnings by 114%. I am also impressed by the company's ability to execute its product road map. Robinhood's Gold membership offers an impressive 3% cash back on its Gold card, the ability to earn competitive interest on deposit balances, and annual matches on individual retirement account contributions.

Robinhood has really become a compelling one-stop shop for many banking needs, all bundled together in a sleek and easy-to-use digital platform. Currently trading at 51 times forward earnings, the stock is undoubtedly expensive, so I'd start by dollar-cost averaging or buy on future dips.

Should you invest $1,000 in Robinhood Markets right now?

Before you buy stock in Robinhood Markets, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Robinhood Markets wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $869,841!*

Now, it’s worth noting Stock Advisor’s total average return is 789% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 2, 2025

Bank of America is an advertising partner of Motley Fool Money. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America. The Motley Fool has a disclosure policy.

SoFi's (NASDAQ: SOFI) CEO, Anthony Noto, said on the company's first-quarter 2025 conference call that the company will invest heavily in crypto and the blockchain over the next few years. Is SoFi becoming a crypto company? Travis Hoium digs into what we know in this video.

*Stock prices used were end-of-day prices of May 9, 2025. The video was published on May 10, 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Should you invest $1,000 in SoFi Technologies right now?

Before you buy stock in SoFi Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoFi Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $614,911!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $714,958!*

Now, it’s worth noting Stock Advisor’s total average return is 907% — a market-crushing outperformance compared to 163% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 5, 2025

Travis Hoium has positions in Coinbase Global, Robinhood Markets, and SoFi Technologies. The Motley Fool has positions in and recommends Coinbase Global. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

• I always pictured a two-parent household for my daughter.
• But a year after becoming a single mom, I realized it was the best thing that could've happened.
• I get to make parenting decisions by myself and can focus all my energy on my daughter.

I never pictured myself as a single mom. As a little girl, I knew I wanted to be a mother more than anything, but I also knew I never wanted to bring a child into a situation similar to my own. Coming from a single-parent household and having had a traumatic childhood, it was more important to me than anything that I give my children a better start in life than my own.

So, I waited. I waited so long that I'd even started coming to terms with never becoming a mother. And when I had my daughter at 36, I'd never been happier in my life. But despite my best efforts, I became a single mother after leaving my partner when she was just six months old. Our relationship was unhealthy, and we do not co-parent together.

I'll be the first to admit the circumstances weren't easy. I'd planned to stay home and work as a freelance writer to supplement our income. That was no longer an option financially. I had new trauma to process and a relationship to mourn, with no time to do it. Like many other single moms, I didn't exactly have an abundance of downtime. And, also like many parents in the US these days, I had no village nearby to help. I was staring down my worst fear: raising my daughter in a childhood that looked like mine.

But looking back nearly a year after becoming a single mother, I see it as the best thing that could have happened.

I can parent exactly how I want to

I often hear other moms vent about how their partners approach certain parenting situations completely differently from how they would. Maybe one parent leans more toward gentle parenting while the other prefers another style. Perhaps they have different timelines in mind for weaning, or different priorities.

As a single parent, I don't have to worry about these conflicts. There are no unexpected fights because of how I respond at any moment, or how my co-parent does. I can simply respond to normal situations like tantrums (which my toddler just started having this month) without the added stress of managing my partner's emotions, too. At the end of the day, I can simply do what I feel is best for my child without the added drama.

I don't have to split myself between my child and a partner

There have been many nights where I've plopped on the couch after getting my toddler down for the night, exhausted both mentally and physically, with barely enough energy to wash my face, start the dishwasher, and make it to bed. One thought that always creeps in is, "How on Earth could I manage the needs of a relationship on top of all this?"

I've always loved love, relationships, and all that comes with those things. But even the best relationships require work. While having a partner to help with tasks like putting my toddler to bed and loading the dishwasher would be nice, I also like being able to do things my way, and the energy I expend doing those things is not more than the energy it takes to keep up a healthy relationship. Right now, as a new parent, I just don't feel I have that energy.

While I always dreamed of a two-parent household for my family, I also find gratitude in the fact that I haven't had to split myself between my child and my relationship — especially an unhealthy one. I haven't had to struggle to muster more of myself to give because there's no competition: I can simply give all of myself to my daughter.

I've been able to soak up every moment of my daughter's childhood

Despite a rather rough year, I live in immense gratitude. I've spent nearly every moment with my daughter. I don't mean just physically, either. I've been able to be mentally and emotionally present for every single moment, every single milestone, and every single stage of development.

How lucky am I that I've been able to soak up every moment of my child's life so far? It may not have been the version of motherhood I imagined, but it's one for which I am extremely grateful.

Webull (NASDAQ: BULL) went public by merging with a special purpose acquisition company (SPAC) on April 11. The online brokerage's stock started trading at $16 that Friday, but it soared to a record closing price of $62.90 the following Monday.

After that dizzying rally, Webull's stock pulled back to around $23. Let's review Webull's business model and see if it's the right time to buy or sell its volatile shares.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

A brief history of Webull

Webull was founded in 2016 as Hunan Fumi Information Technology, a Chinese holding company backed by Xiaomi, Shunwei Capital, and other private equity investors in China. Its founder, Anquan Wang, previously worked at Alibaba.

In 2017, Hunan Fumi launched Webull as a Delaware-based LLC and opened its headquarters New York City. Webull subsequently launched its namesake trading app in 2018, and it incorporated itself as a new company in the Cayman Islands in 2019.

In 2022, Webull moved its headquarters to St. Petersburg, Florida, and restructured its business to separate Hunan Fumi, its original Chinese holding company, from the rest of its growing business. That split paved the way for Webull's recent merger with SK Growth Opportunities, a SPAC affiliated with the South Korean conglomerate SK Group.

Webull is technically a U.S.-based company now, but last November a coalition of states attorneys general launched a probe into its alleged ties to the Chinese government. Those allegations could expose Webull to the same regulatory risks as other Chinese-affiliated apps, including ByteDance's TikTok and PDD's Temu.

How fast is Webull growing?

Webull is similar to Robinhood (NASDAQ: HOOD). Both companies provide commission-free trades for stocks, ETFs, options, cryptocurrencies, and fixed-income investments on their streamlined mobile apps. However, Webull claims it serves more experienced investors than Robinhood, which carved out its niche by locking in millions of first-time investors.

Both companies generate their revenue with a "payment for order flow" (PFOF) model that routes their clients' brokerage orders through high-frequency trading (HFT) firms in exchange for commissions for each routed order. Both companies also offer paid subscription tiers that offer real-time data and other perks.

Webull operates in 14 markets, and it's a licensed broker-dealer in the U.S., Canada, Hong Kong, Singapore, Malaysia, Japan, Indonesia, Thailand, Australia, the U.K., the Netherlands, and South Africa. Robinhood is only a licensed broker-dealer in the U.S., the U.K., and Lithuania.

Webull served more than 23.3 million registered users at the end of 2024, but it had only 4.7 million funded accounts with $13.6 billion in customer assets. By comparison, Robinhood served 25.2 million funded customers at the end of 2024 with $193 billion in assets under custody. So while Webull is more globally diversified than Robinhood, it's still a distant underdog.

If we divide their total assets by funded customers, we also see that the average size of a Webull account was only $2,894 at the end of 2024, versus an average account size of $7,659 at Robinhood. That big gap indicates that Webull's customers aren't as affluent as Robinhood's -- even though it argues its a platform for more "experienced" investors.

In 2024, Webull's registered user base grew 18%, its funded accounts increased 9%, and its total assets increased 66%. However, its total revenue stayed nearly flat at $390 million, its operating expenses rose 10% to $404.5 million, and its adjusted operating margin dropped from 13.4% to 4.7%. For reference, Robinhood's revenue surged 58% to $2.95 billion in 2024.

The two reasons to buy Webull... and the four reasons to sell it

The bulls might like Webull for two reasons: It's more geographically diversified than Robinhood, and it's still gaining new users and accounts in those fertile markets.

However, the bears probably think Webull's stock will fizzle out for four reasons. First, its flat top-line growth indicates it's struggling to squeeze more revenue from its existing users. Second, it's never a good sign when the underdog is growing slower than a market leader -- and Webull's metrics look grim compared to Robinhood's. Third, Webull looks overvalued. With a market cap of $10.8 billion, it trades at a whopping 28 times last year's sales. Robinhood, with a market cap of $37.3 billion, trades at 13 times last year's sales. Last but not least, it could be hit by more regulatory probes regarding its links to China.

Therefore, the reasons to sell or avoid Webull easily outweigh the reasons to buy it. If you're interested in investing in a commission-free brokerage, it makes more sense to stick with Robinhood than with its smaller and slower-growing competitor.

Should you invest $1,000 in Webull right now?

Before you buy stock in Webull, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Webull wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $591,533!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $652,319!*

Now, it’s worth noting Stock Advisor’s total average return is 859% — a market-crushing outperformance compared to 158% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Leo Sun has no position in any of the stocks mentioned. The Motley Fool recommends Alibaba Group and Xiaomi. The Motley Fool has a disclosure policy.