Robinhood Markets (HOOD) Fell on Weak Core Earnings

TimesSquare Capital Management, an equity investment management company, released its "U.S. Mid Cap Growth Strategy" first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The Strategy fell 7.72% (net) in the quarter compared to -6.35% for the Russell Midcap Growth Index. In the first quarter, markets navigated geopolitical tensions and economic resilience alongside temporary global tariffs. High oil prices and supply chain disruptions followed U.S. and Israeli involvement in Iran, prompting a shift to safer assets and a reevaluation of supply chains and energy dependencies. Central banks maintained steady policies despite energy-driven inflation. In this environment, the Strategy remains focused on disciplined management teams with durable competitive advantages. Please review the Strategy's top five holdings to gain insights into their key selections for 2026. In its first-quarter 2026 investor letter, TimesSquare Capital U.S. Mid Cap Growth Strategy highlighted Robinhood Markets, Inc. (NASDAQ:HOOD). Robinhood Markets, Inc. (NASDAQ:HOOD) is a US-based financial services company that provides a trading platform for stocks, exchange-traded funds, American depository receipts, options, gold, and cryptocurrencies. On June 30, 2026, Robinhood Markets, Inc. (NASDAQ:HOOD) closed at $100.28 per share. One-month return of Robinhood Markets, Inc. (NASDAQ:HOOD) was 21.04%, and its shares gained 2.35% over the past 52 weeks. Robinhood Markets, Inc. (NASDAQ:HOOD) has a market capitalization of $90.30 billion. TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Robinhood Markets, Inc. (NASDAQ:HOOD) in its Q1 2026 investor letter: "In the Financials sector, we tend to avoid banks experiencing credit deterioration or rising deposit costs, preferring asset managers, specialized insurance companies, or financial technology providers. Robinhood Markets, Inc. (NASDAQ:HOOD) operates a financial services platform enabling users to invest in stocks, exchange-traded funds, American depository receipts, and cryptocurrency. In the latest results, core earnings were weaker due to lower net revenue, resulting in a -39% pullback. Management struck a constructive tone on the 2026 outlook and expects revenue growth to continue to exceed expense growth. We had trimmed back the position prior to Q4 earnings." Robinhood Markets, Inc. (HOOD): Jim Cramer Shares How His Wife Advised CEO Vlad Tenev Robinhood Markets, Inc. (NASDAQ:HOOD) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 84 hedge fund portfolios held Robinhood Markets, Inc. (NASDAQ:HOOD) at the end of the first quarter, up from 83 in the previous quarter. In Q1 2026, Robinhood Markets, Inc. (NASDAQ:HOOD) reported revenue of $1.1 billion, up 15% year-over-year. While we acknowledge the potential of Robinhood Markets, Inc. (NASDAQ:HOOD) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.