The Nasdaq Composite (^IXIC +0.43%) entered a bull market on April 8, 2025. The index has since added 54%, but history says it will climb much higher. Since 1990, the Nasdaq has returned an average of 98% during the first two years of a new bull market.
What does that imply? The Nasdaq closed at 15,268 on April 8, 2025. The index will soar 98% to 30,231 by April 8, 2027, if its performance matches the historical average. Past results are never a guarantee of future returns, but investors should consider buying two Nasdaq stocks: Meta Platforms (META +2.06%) and Robinhood Markets (HOOD 0.01%).
- Among 72 analysts, Meta has a median target price of $820 per share. That implies 25% upside from its current share price of $658.
- Among 28 analysts, Robinhood has a median target price of $155 per share. That implies 45% upside from its current share price of $107.
Here's what investors should know about Meta Platforms and Robinhood.
Image source: Getty Images.
Meta Platforms: 25% upside implied by the median target price
Meta Platforms owns three of the four most popular social media networks as measured by monthly active users. And Facebook, Instagram, Messenger, and WhatsApp collectively reach 3.5 billion people daily. That scale creates a network effect: Creators follow users, users follow creators, and advertisers follow both. That dynamic has made Meta the second-largest adtech company.
Malik Ahmed Khan at Morningstar recently wrote, "Meta is a digital advertising juggernaut poised to increase its market share." His conviction is partly due to the company's success with artificial intelligence (AI). Content recommendation and ranking systems powered by machine learning have improved user engagement and advertising conversion rates, which has strengthened demand.
In prepared remarks, CFO Susan Li told analysts ad impressions increased 14% in the third quarter. She also said the average price per ad increase 10% due to "increased advertiser demand, largely driven by improved ad performance." Meta stock sold off sharply following the report and it remains 17% below its high because management said capital expenditures will be "notably larger" in 2026.
That creates a buying opportunity. Meta's investments in AI have had measurable, positive impacts on its adtech business, and the company's plan to fully automate ad creation and targeting in 2026 should further strengthen demand. Furthermore, the stock currently trades at 29 times earnings, a reasonable multiple for a company whose earnings are forecast to increase at 18% annually over the next three years.
NASDAQ: HOOD
Key Data Points
Robinhood Markets: 45% upside implied by the median target price
Robinhood operates a trading platform geared toward young investors. With nearly twice the number of millennial and Gen Z accounts as the next closest competitor, the company is well positioned to benefit from the greatest wealth transfer in history. To elaborate, during the next few decades, baby boomers will pass along $124 trillion in assets to millennial and Gen Z heirs, according to Ark Invest.
Robinhood is currently a minor player in the brokerage market, but the company is gaining share across multiple trading categories, including cryptocurrency, equities, margin, and options. Meanwhile, Robinhood has also become a major player in prediction markets since first allowing users to bet on the outcome of real-world events in late 2024.
"Although the EPS growth rate is expected to slow, we believe the company has a long ramp to gain market share and produce EPS gains well ahead of the broader market," writes Argus Research analyst Stephen Biggar. "Funded customers, platform assets, and net deposits have grown rapidly over the past few years, as the company has set a blistering pace of new product introduction."
Importantly, Robinhood introduced an AI-powered investing assistant called Cortex in March 2025. The product is exclusively available to Gold subscribers, and it lets investors use natural language to make trades, conduct market research, and adjust account settings. "The goal is to put an AI-powered research assistant in your pocket to help you with your self-directed portfolio," according to management.
Wall Street expects Robinhood's earnings to increase at 22% annually over the next three years. That makes the current valuation of 44 times earnings look reasonable. Investors with a time horizon of at least five years should consider buying a position in this fintech stock today.
