We lately revealed an inventory of 12 Most Popular Stocks on Robinhood in 2025. On this article, we’re going to try the place Technique Included (NASDAQ:MSTR) stands towards different hottest shares on Robinhood in 2025.
Particular person traders, usually referred to as retail traders, on platforms as Robinhood symbolize an more and more influential market section that reveals lively buying and selling behaviors, responsiveness to tendencies and momentum, and collective market-moving energy. Notable examples embrace the 2021 brief squeezes in shares that brought about billions of losses to a number of hedge funds. In these cases, collective shopping for exercise on Robinhood, coordinated via social media platforms, brought about speedy and sharp inventory worth actions that might not be anticipated by professionals. The important thing takeaway is that even the least knowledgeable section of traders can sometimes have the ability to maneuver the markets and drive pockets of volatility, which routinely creates alternatives for features.
Historical past reveals that retail curiosity in shopping for shares sparked at or instantly earlier than market peaks, making it an indicator of potential market overvaluation and a predictor of market corrections. Nonetheless, retail traders are leveraging social media, AI, and studying instruments to get extra knowledgeable than ever, which has led to their habits altering over time. For example, it was broadly reported that retail traders have injected billions of {dollars} into US shares throughout the latest inventory market correction. JP Morgan talked about that throughout the early April meltdown, retail traders purchased a document $4.7 billion value of shares, the very best degree in over a decade. Small-cap know-how was one of many favourite sector picks of particular person traders amid the meltdown, whereas institutional traders have elevated their bets towards the sector. This highlights the concept that retail traders have adopted a better investing technique, which entails shopping for dips and undervalued shares.
The large query is how one may exploit the alerts communicated by the retail buying and selling exercise on platforms comparable to Robinhood? The reply is by investing in the identical shares which might be purchased by each retail and institutional traders. Shopping for strain from each these market segments will inevitably result in upward momentum in inventory costs. In different phrases, if everyone seems to be shopping for, then odds are the inventory costs will transfer increased. In addition to that, earlier than shopping for, one ought to ensure that the economic system is shifting in the precise course. We consider the outlook on the US economic system is changing into extra optimistic than it was final month, for the next causes:
First, information that China and the US may be shifting towards beginning commerce negotiations is exceptionally optimistic in that they mitigate the biggest disruptor of the inventory market within the final months – the Trump Tariff Turmoil. On this regard, the respected Yardeni Analysis has lately lowered its subjective odds of a recession from the earlier 45% to the present 35% (decrease odds of recession means increased probability of stronger earnings and thus increased inventory costs).
Second, the better-than-expected April US employment report represents an vital sign that companies aren’t shopping for into the recession story and are positively not speeding to downsize their enterprise. In keeping with the report, US employers added 177,000 jobs in April and the unemployment price was unchanged at 4.2 %, which represents a wholesome degree for the general economic system. That is among the many important indicators utilized by Fed officers to make their financial coverage selections; we consider they’re prone to conclude that the US economic system is in good condition.
Third, the biggest and most potent section of the inventory market – the Magnificent 7 – continues to be doing nice and is well-positioned to proceed to push the general market increased. Three of them have already overwhelmed earnings expectations in Q1 2025. Whereas AI could or could indirectly become profitable for the large tech, the demand for cloud computing will inevitably rise, stimulating their earnings. The Magnificent 7 is such a big section of the market that their energy may greater than offset any weak spot in industrial exercise and the buyer discretionary sector, which have been sluggish year-to-date.
To sum up, our listing of hottest shares on Robinhood was created by taking a look at the preferred buys from retail traders, that are additionally supported by hedge funds. In a impartial or rising economic system, we consider the chances are that these shares might be among the many best-performing resulting from immense shopping for strain from all classes of traders.
To compile our listing of hottest shares on Robinhood, we used public press releases to search out probably the most broadly purchased shares on the platform within the first 4 months of the yr. Then we in contrast the listing with our proprietary database of hedge funds’ possession as of the fourth quarter of 2024, and included within the article the highest 12 shares with the biggest variety of hedge funds that personal the inventory, ranked in ascending order.
Why are we within the shares that hedge funds pile into? The reason being easy: our analysis has proven that we are able to outperform the market by imitating the highest inventory picks of the most effective hedge funds. Our quarterly e-newsletter’s technique selects 14 small-cap and large-cap shares each quarter and has returned 373.4% since Could 2014, beating its benchmark by 218 proportion factors (see more details here).
Technique Included (MSTR): Amongst Most In style Shares on Robinhood in 2025
A software program engineer carrying a headset, collaborating with a distant workforce on a mission.
Variety of Hedge Fund Holders: 44
Technique Included (NASDAQ:MSTR), previously referred to as MicroStrategy, is a US-based firm that gives AI-powered enterprise analytics software program and companies, whereas additionally holding vital Bitcoin property. MSTR stays the biggest company holder of bitcoin, with 553,555 bitcoins valued at $52 billion as of April 28.
Within the first 4 months of 2025, Technique Included (NASDAQ:MSTR) acquired an extra 106,085 bitcoin for $9.9 billion at a median worth of roughly $93,600. The corporate has efficiently raised substantial capital, together with $6.6 billion via fairness choices, $2 billion via convertible notes, and $1.4 billion via newly listed most well-liked inventory. Since adopting its bitcoin technique in 2020, MSTR inventory has outperformed each main asset class and S&P firm, appreciating 2,887% so far, in comparison with bitcoin’s 692% and the broader market’s 65% features. The persistent curiosity of retail traders in the direction of Bitcoin and cryptocurrencies makes MSTR probably the most common shares on Robinhood in 2025.
Technique Included (NASDAQ:MSTR) has introduced an expanded capital plan, dubbed the 42/42 plan, focusing on $42 billion in fairness and $42 billion in mounted earnings via 2027. MSTR is specializing in growing the credit score markets and introducing modern mounted earnings securities, with the potential to emerge because the world’s first investment-grade bitcoin treasury firm. The corporate maintains a disciplined leverage ratio between 20% and 30%, permitting accountable scaling whereas maximizing long-term worth. Administration believes that with $109 billion in fairness market cap and roughly $100 billion in fairness cushion over mounted earnings liabilities, the corporate’s capital construction is nicely fortified.
General, MSTR ranks tenth on our listing of hottest shares on Robinhood in 2025. Whereas we acknowledge the potential of MSTR to develop, our conviction lies within the perception that AI shares maintain higher promise for delivering increased returns and doing so inside a shorter timeframe. There may be an AI inventory that went up because the starting of 2025, whereas common AI shares misplaced round 25%. If you’re in search of an AI inventory that’s extra promising than MSTR however that trades at lower than 5 instances its earnings, try our report about this cheapest AI stock.
