Fundstrat’s Tom Lee updated his top stock ideas for 2026. He added JPMorgan and Arista Networks to his core list, but named Robinhood a stock to avoid.

His Investment Committee pushed back almost immediately. Panelists argued the call misreads a company that has become one of crypto’s favorite stocks.

Why Tom Lee’s Committee Pushed Back

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

“I couldn’t disagree more.”

— Kevin Simpson, CNBC

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

Simpson said Robinhood has outgrown its early, pandemic-era reputation. He pointed to its purchase of a registered investment adviser and its in-house custodial platform.

Brenda Vingiello, chief investment officer at Sand Hill Global Advisors, sold her Robinhood shares in June, citing a breakdown in the stock’s momentum. Still, she disagreed with Lee’s broader call.

She said a crypto market recovery could lift the stock again, since Robinhood still tracks digital asset sentiment closely.

A Growing Crypto and Blockchain Footprint

Robinhood’s own crypto trading business is shrinking. Crypto transaction revenue fell 38% year-over-year to $100 million in the second quarter, the company said.

Robinhood has redirected its crypto ambitions toward infrastructure instead. In July, it launched Robinhood Chain, its own layer-2 blockchain built on the Arbitrum network. The chain is designed for tokenized stocks, decentralized lending, and round-the-clock trading.

Robinhood Chain’s total value locked has topped $550 million, according to DefiLlama. Tokenized stocks and other real-world assets account for about a quarter of that total.

Stablecoins make up a much larger share of Robinhood Chain’s total value. USDG, Robinhood’s dollar-backed stablecoin, accounts for more than half of that stablecoin pool, per DefiLlama data.

One Robinhood-branded token even triggered a 100 percent meme coin rally after listing on the chain. It’s unclear yet whether tokenized stocks or crypto speculation will define the chain’s future.

Arista and JPMorgan Get the Nod

Lee’s other additions drew less debate. Arista Networks has benefited from accelerating AI networking demand, while JPMorgan earned praise amid a recovering IPO market.

Robinhood shares traded near $96, giving it an $86 billion market cap. Whether Lee’s other stock picks age well may depend on Robinhood’s crypto side, not its brokerage growth.

Source: BeInCrypto