Tom Lee Says Avoid Crypto Favorite Robinhood Stock Despite Record Q2 Growth

Fundstrat’s Tom Lee up to date his high inventory concepts for 2026. He added JPMorgan and Arista Networks to his core checklist, however named Robinhood a inventory to keep away from.

His Investment Committee pushed again virtually instantly. Panelists argued the decision misreads an organization that has turn out to be one in all crypto’s favourite shares.

Why Tom Lee’s Committee Pushed Back

Speaking on CNBC, Kevin Simpson, founder and chief funding officer of Capital Wealth Planning, disagreed most instantly with Lee.

“I couldn’t disagree extra.”

— Kevin Simpson, CNBC

He pointed to Robinhood’s second-quarter results. Revenue rose 32% year-over-year to a report $1.31 billion. Diluted earnings per share climbed 48% to $0.62. Net deposits hit a report $22 billion, up 28% on an annualized foundation.

Simpson mentioned Robinhood has outgrown its early, pandemic-era fame. He pointed to its buy of a registered funding adviser and its in-house custodial platform.

Brenda Vingiello, chief funding officer at Sand Hill Global Advisors, bought her Robinhood shares in June, citing a breakdown within the inventory’s momentum. Still, she disagreed with Lee’s broader name.

She mentioned a crypto market restoration may raise the inventory once more, since Robinhood nonetheless tracks digital asset sentiment intently.

A Growing Crypto and Blockchain Footprint

Robinhood’s personal crypto buying and selling enterprise is shrinking. Crypto transaction income fell 38% year-over-year to $100 million within the second quarter, the company said.

Robinhood has redirected its crypto ambitions towards infrastructure as an alternative. In July, it launched Robinhood Chain, its personal layer-2 blockchain constructed on the Arbitrum community. The chain is designed for tokenized shares, decentralized lending, and round the clock buying and selling.

Robinhood Chain’s whole worth locked has topped $550 million, in line with DefiLlama. Tokenized shares and different real-world property account for a couple of quarter of that whole.

Stablecoins make up a a lot bigger share of Robinhood Chain’s whole worth. USDG, Robinhood’s dollar-backed stablecoin, accounts for greater than half of that stablecoin pool, per DefiLlama knowledge.

One Robinhood-branded token even triggered a 100 percent meme coin rally after itemizing on the chain. It’s unclear but whether or not tokenized shares or crypto hypothesis will outline the chain’s future.

Arista and JPMorgan Get the Nod

Lee’s different additions drew much less debate. Arista Networks has benefited from accelerating AI networking demand, whereas JPMorgan earned reward amid a recovering IPO market.

Robinhood shares traded close to $96, giving it an $86 billion market cap. Whether Lee’s other stock picks age nicely might depend upon Robinhood’s crypto aspect, not its brokerage development.

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