Jim Cramer Says 'Misunderstood' Robinhood Stock Not Merely A Crypto Play: 'It's An Investment In The Way The Next Generations Will Invest'

Financial analyst Jim Cramer called Robinhood Markets Inc. HOOD a "misunderstood" stock on Wednesday, seeing it as an investment in the future of investing

What happened: In an X post, Cramer emphasized that Robinhood is not merely a play on cryptocurrencies or risky options.

"It is an investment in the way the next generations will invest, and it has the field to itself because most investment houses don’t even want their clients and don’t understand what they want," the host of CNBC's popular Mad Money show said.

Robinhood is NOT a play on crypto or dangerous options. It is an investment in the way the next generations will invest and it has the field to itself because most investment houses don't even want their clients and don't understand what they want. Big mistake
— Jim Cramer (@jimcramer) February 26, 2025

In a separate post, Cramer deemed Robinhood a "very misunderstood" company. He believed Robinhood was creating platforms that simplify market navigation for its customers.

Robinhood is very misunderstood company and stock. .The company is designing sites that make it easier for its customers to negotiate the markets the way they want to.
— Jim Cramer (@jimcramer) February 26, 2025

Robinhood is a mobile-based, commission-free trading platform that allows users to buy and sell stocks, exchange-traded funds, options, and cryptocurrencies, including Bitcoin BTC/USD and Dogecoin DOGE/USD.

Why It Matters: Cramer’s views come in the wake of Robinhood CEO Vlad Tenev's optimism about the company’s future and the broader cryptocurrency landscape.

Tenev highlighted the firm’s strong performance, including its first billion-dollar revenue quarter and record net income profits. The company also reported a fivefold jump in cryptocurrency volumes in the fourth quarter.

More importantly, the SEC ended its investigation of the firm's cryptocurrency operations without pursuing any enforcement action.

Price Action: Shares of Robinhood were up 3.42% in after-hours trading, after closing 6.38% higher at $48.85, according to data from Benzinga Pro.

As is well known, the "Inverse Cramer" phenomenon hinges on the belief that doing the opposite of what Cramer advises could lead to profits. There has been no definitive proof, though, of counter-trading Cramer's predictions being a profitable strategy.

Read Next: