On October 17, 2025, the financial world took notice when TB Alternative Assets Ltd., a prominent hedge fund, revealed a significant new position in Robinhood Markets, Inc. (NASDAQ:HOOD). According to filings with the Securities and Exchange Commission, TB Alternative Assets acquired 241,680 shares in Robinhood, representing an estimated $34.6 million investment based on the stock’s average price for the third quarter of 2025. This move increased the fund’s 13F reportable assets under management by 5.2%, bringing its total U.S. equity holdings to $668.39 million spread across 48 positions as of September 30, 2025.
This strategic stake in Robinhood now comprises 5.2% of TB Alternative Assets’ reportable portfolio, making it the fund’s seventh largest holding at the close of Q3. While this doesn’t push Robinhood into the top five—positions still dominated by tech giants like Meta ($76.97 million), Alphabet ($58.56 million), Intel ($51.26 million), PDD ($45.72 million), and MicroStrategy ($40.60 million)—it signals a notable vote of confidence in the rapidly evolving fintech platform.
Robinhood’s meteoric rise over the past year has been nothing short of remarkable. As of October 16, 2025, its shares closed at $131.44, marking a staggering 381.68% increase over the previous twelve months and outperforming the S&P 500 by 374.73 percentage points. This surge has pushed the company’s market capitalization to approximately $115.45 billion, a testament to its growing influence in the U.S. financial services sector.
Robinhood’s business model centers on a commission-free, technology-driven approach that appeals to retail investors. The company’s digital-first platform enables trading across stocks, ETFs, options, gold, and cryptocurrencies, all while lowering the barriers to entry for individuals seeking accessible, low-cost investment opportunities. The platform’s broad appeal is reflected in its impressive financial performance over the past year.
For the trailing twelve months, Robinhood reported revenue of $3.57 billion and net income of $1.79 billion. Its second quarter of 2025 alone saw sales reach $989 million, a 45% year-over-year jump, while net income soared 105% to $386 million. The company’s Robinhood Gold subscription service has also proven a powerful engine for growth, adding 1.5 million subscribers in Q2—a 76% increase from the previous year—bringing the total to 3.5 million subscribers. All told, these numbers underscore Robinhood’s ability to attract and retain a growing customer base, even as competition in the fintech space intensifies.
Despite these impressive gains, Robinhood’s sky-high valuation has raised eyebrows among analysts and industry watchers. As of October 2025, the company’s price-to-earnings (P/E) ratio exceeded 65, far outpacing traditional financial stalwarts like Morgan Stanley, which sports a P/E of just 16. This lofty valuation has led some to question whether TB Alternative Assets’ sizable position in Robinhood is a prudent bet at current prices or a risky play in an overheated market. Still, Robinhood’s ability to diversify its revenue streams—such as through its Gold subscription fees—may have helped justify the hedge fund’s investment.
TB Alternative Assets is not alone in its bullish outlook. Pinnacle Wealth Management LLC acquired a new stake in Robinhood during the second quarter of 2025, picking up 20,272 shares valued at roughly $1.9 million. This represented 1.6% of Pinnacle’s holdings, making Robinhood its 29th largest position. Other institutional investors have also increased their stakes throughout the year. HighTower Advisors LLC, for instance, boosted its Robinhood holdings by 6.4% in the first quarter, while TD Private Client Wealth LLC more than doubled its stake, and Metavasi Capital LP nearly quadrupled its Robinhood shares during the same period. As of October 2025, an estimated 93.27% of Robinhood’s stock is owned by hedge funds and institutional investors, reflecting widespread confidence from Wall Street’s heavy hitters.
Wall Street analysts have been quick to adjust their outlooks in response to Robinhood’s performance. Morgan Stanley raised its target price for Robinhood from $110 to $146 in early October, assigning the stock an “equal weight” rating. KeyCorp and Piper Sandler also boosted their targets, with Piper Sandler moving from $120 to $140 and maintaining an “overweight” rating. Compass Point and Cantor Fitzgerald have similarly raised their target prices, with a consensus target price among twelve investment analysts now standing at $118.94, according to MarketBeat.com. The majority of analysts (twelve) rate Robinhood as a “Buy,” with seven assigning a “Hold” and only one recommending “Sell.”
Robinhood’s own insiders have also been active in the market. On August 1, 2025, insider Daniel Martin Gallagher, Jr. sold 225,000 shares at an average price of $99.97, totaling nearly $22.5 million. Just two months later, CEO Vladimir Tenev sold 750,000 shares at an average price of $139.73, netting almost $105 million. In total, insiders have sold over 5.18 million shares valued at $567.3 million in the last ninety days. Despite these sales, company insiders still own 14.47% of the stock, a significant stake that aligns their interests with those of other shareholders.
Robinhood’s stock price has not been immune to volatility. On October 17, 2025, shares opened at $129.91, reflecting a slight pullback from recent highs but still well above its 12-month low of $23.00. The company’s P/E ratio of 65.94 and price/earnings-to-growth (P/E/G) ratio of 3.43 point to high expectations for future growth, while its beta of 2.42 suggests the stock is likely to experience above-average price swings compared to the broader market.
Robinhood’s platform continues to evolve, offering users fractional trading, recurring investments, fully-paid securities lending, margin investing, instant withdrawals, and even participation in initial public offerings. This suite of features, combined with around-the-clock trading and a robust retirement program, positions Robinhood as a formidable competitor in the digital finance space.
While some analysts and market observers caution that Robinhood’s valuation may be running ahead of its fundamentals, others point to the company’s rapid growth, innovative offerings, and expanding customer base as reasons to remain optimistic. As investors weigh these competing narratives, one thing is clear: Robinhood has become a focal point for both institutional and retail investors seeking to capture the next wave of fintech disruption.
With TB Alternative Assets and a host of other major players placing big bets, the market will be watching closely to see whether Robinhood can maintain its momentum—or if its high-flying valuation will eventually come back down to earth.
