Robinhood Rises 0.91% as Daily Trading Volume Falls to 13th in U.S. Market

Robinhood Markets (HOOD) rose 0.91% on August 21, 2025, closing at $106.23 per share despite a 36.94% decline in daily trading volume to $3.69 billion, ranking 13th in the U.S. equity market. The stock’s year-to-date surge of 175% and annual gain of 440% reflect growing investor confidence in its expanding financial ecosystem.

The firm’s strategic push into the RIA custody sector, including a referral program with TradePMR, has positioned it to leverage its 27.4 million user base and $549 million in Q2 Adjusted EBITDA. Analysts highlight its AI-driven tools, such as the Cortex investment assistant in the UK, and a 300% growth in crypto brokerage activity amid regulatory developments. The company’s Gold Card, offering cashback incentives, further enhances user retention and data monetization potential.

Industry observers note Robinhood’s median user age of 35 aligns with the Great Wealth Transfer, while its foray into sports prediction markets blurs traditional investing boundaries. With a $95 billion market cap, some predict inclusion in major indices like the S&P 500, potentially driving passive capital inflows. The stock’s performance has outpaced peers like Palantir, fueled by its disruptive market positioning and youth-centric strategy.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to now delivered moderate returns. The 1-day return was 0.98%, with a total return of 31.52% over 365 days. This indicates the strategy captured some short-term momentum but was subject to market fluctuations. It performed best in June 2023, with returns of 7.02%, and worst in September 2022, with a return of -4.20%. Overall, the strategy provided modest capital appreciation with significant volatility.