Under a second Trump term, Needham raised Robinhood Markets (NASDAQ:HOOD) stock to Buy from Hold on Monday, citing the improvements at Securities and Exchange Commission to help the stock trading software. Needham analyst John Todaro anticipates Robinhood will grow cryptocurrencies that can be traded on its app since Donald Trump promises to adopt a more crypto-friendly strategy and to fire SEC Chair Gary Gensler within "two seconds" of assuming office.

• Warning! GuruFocus has detected 6 Warning Sign with HOOD.

HOOD has historically limited its product suite to avoid SEC enforcement actions, but with change in Chair, we believe Hood will launch new offerings including the four new assets last week," he wrote in a note to clients.

Furthermore, Todaro noted, "we expect a retail driven bull market to be in HOOD's favor as the company has been successful in launching meme' related trading products, which appeal to retail customers." Robinhood (NASDAQ:HOOD) is a "one-stop-shop" for financial services since the company's equity and margin businesses help to moderate the volatility of crypto income.

This article first appeared on GuruFocus.