QUICK SPARK: Tom Lee Says Avoid Robinhood Stock in 2026

Fundstrat’s Tom Lee is warning investors to avoid Robinhood Markets (NASDAQ:HOOD), naming the trading platform as a stock to steer clear of in 2026, as part of his updated investment recommendations on Wednesday.

Tom Lee’s Ethereum AI Vision

While Lee is cautious about Robinhood, he has a different outlook for Ethereum (CRYPTO:ETH). On Tuesday, he described Ethereum as the key Layer-1 blockchain for the AI era, emphasizing its role in controlling AI and robotics through blockchain technology.

Lee argued that Ethereum will serve as a critical layer for governance and on-chain settlement, making it a vital component in the AI landscape. He shared these insights in a series of posts on X.

Ethereum’s Breakout

Lee also commented on Ethereum’s market position, noting its proximity to a bullish Ichimoku cloud breakout. On Tuesday, he expressed optimism about Ethereum’s potential to achieve its first bullish trend signal since October 2025.

The cryptocurrency is breaking out on Wednesday, trading at over $2,000. Lee’s anticipation of the breakout highlights his positive stance on Ethereum’s market trajectory.

Technical Analysis

Robinhood’s stock has shown significant volatility, with its largest one-day move being a 15.83% increase on Sept. 8, 2025. The stock’s highest close was $152.46 on Oct. 9, 2025, while the lowest close was $65.16 on March 30, 2026. Currently, Robinhood trades at $98.46, with its market cap standing at $86.54 billion.

Despite recent fluctuations, Robinhood has added about $3.24 billion in market cap over the past week. The stock’s RSI(14) is at 52.81, indicating a neutral position, while it trades 1.98% above its 200-day SMA of $96.55, reflecting a positive trend.

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