According to CNBC, Tom Lee, Co-founder and Head of Research at Fundstrat Global Advisors, said that Robinhood stock is one to avoid in 2026.
- However, Capital Wealth Planning CEO Kevin Simpson has a different take, saying in a CNBC interview that he has faith in CEO Vlad Tenev.
- Simpson noted in the interview that HOOD stock has a very high valuation and also acknowledged that it has not “made much money” over the past year.
- However, he argued that over the past three years, “there's not many stocks we've made more money with.”
- The fintech stock has surged more than 827% over the last three years.
Robinhood Markets Inc (HOOD) has been one of the retail-investing success stories this year, but Wall Street is divided over whether its immense growth can justify its valuations. Tom Lee, Co-founder and Head of Research at Fundstrat Global Advisors, has reportedly named HOOD among the stocks to avoid in 2026. However, Capital Wealth Planning CEO Kevin Simpson has a different take, who said in a CNBC interview that he has faith in CEO Vlad Tenev.
The bearish call on HOOD stock comes alongside other cryptocurrency-linked names including financial services firm Galaxy Digital Inc. (GLXY) and Riot Platforms Inc. (RIOT).
Meanwhile, Lee named JPMorgan Chase (JPM), Lumentum Holdings Inc. (LITE) and AI-linked stock Arista Networks Inc. (ANET) among Findstrat’s top stock picks.
Is HOOD Stock Too Expensive?
HOOD stock has a forward price-to-earnings multiple of 33.7x, as per data from Koyfin. Meanwhile, in comparison, Charles Schwab Corp. (SCHW) and SoFi Technologies Inc. (SOFI) have P/E ratios of 15.2x and 24.6x, respectively.
What’s The Bullish Take On HOOD Stock?
Simpson noted in the interview that HOOD stock has a very high valuation and also acknowledged that it has not “made much money” over the past year.
HOOD stock is also down nearly 10% in the last year. “But if you look at it over the past three years, there's not many stocks we've made more money with,” he said.
The fintech stock has surged over 827% in the last three years.
“I just believe in Vlad. I believe in this company. And I think that the next generation of investors are embedded in this ecosystem,” Simpson said.
Robinhood’s Growth Story Is Building
Robinhood’s recent strength has been supported by crypto momentum, robust second-quarter (Q2) results and continued product expansion.
The company’s Q2 revenue rose 32% year over year to $1.3 billion, helped by a surge in prediction-market activity. Robinhood’s prediction markets event contract reached $156 million in revenue in the quarter, surpassing its crypto trading revenue for the first time.
| Segment | Revenue |
| Net revenues | $1.31 billion |
| Transaction-based revenues | $776 million |
| Equity revenues | $129 million |
| Options revenue | $342 million |
| Prediction markets and event contracts | $156 million |
| Cryptocurrency-related revenue | $100 million |
The company has benefited from growing optimism around U.S. crypto regulation, while CEO Vlad Tenev has pushed for clearer rules around tokenized equities. Meanwhile, rising Bitcoin prices have also bolstered the stock higher in recent days.
The company has also benefited from the elimination of the Pattern Day Trader (PDT) rule, which removed trading restrictions on active traders and smaller accounts previously constrained by the $25,000 threshold.
HOOD Stock: What Retail Investors Are Saying
On Stocktwits, retail sentiment around HOOD stock improved from ‘bearish’ to ‘neutral’ over 24 hours even as message volumes surged 124% in the same time.
One user said, “$HOOD shocked this isn’t over 100 with crypto getting hot again.”
Another user said, “$HOOD easy buy, green tomorrow.”
HOOD stock is down more than 17% year-to-date.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
