TLDR
- Robinhood, AppLovin Surge as They Join the S&P 500 in Major Index Shuffle
- S&P 500 Adds Robinhood & AppLovin, Stocks Soar After-Hours on Surprise Move
- Robinhood to Enter S&P 500, Replacing Caesars, Stock Jumps Over 7%
- AppLovin & Robinhood Join S&P 500, Gaining Big on Index-Tracking Demand
- Robinhood & AppLovin Gain S&P 500 Spots After Meeting Profit & Cap Criteria
Robinhood (HOOD) closed at $101.25, down 1.61% during regular trading, but surged to $108.36 in after-hours, up 7.02%, following a surprise announcement from S&P Dow Jones Indices.
The index committee confirmed that Robinhood and AppLovin will join the S&P 500 index and will begin trading on September 22. Robinhood closed regular trading at $101.25, down 1.61%, but soared to $108.36 after the announcement.
AppLovin will replace MarketAxess Holdings, while Robinhood will replace Caesars Entertainment in the S&P 500. This marks a significant shift as both tech-oriented firms prepare to gain broader market exposure. Their inclusion reflects both companies’ recent market performance and improved financial metrics.
The S&P 500 index, a benchmark for U.S. equities, includes companies meeting strict eligibility standards. These include a minimum market cap of $22.7 billion, a float-adjusted market cap of at least $10.25 billion, and profitability under GAAP. The September rebalance is typically the most active due to annual float-factor adjustments.
Robinhood Joins Index After Previous Exclusions
Robinhood becomes the third-largest company to join the S&P 500. The index committee had passed over Robinhood in both scheduled and unscheduled rebalances earlier this year. Despite market speculation, Robinhood had been excluded when the committee opted to add other fintechs like Coinbase and Block.
This time, the committee took action, signaling renewed confidence in Robinhood’s financial position and growth prospects. The firm has maintained GAAP profitability and crossed necessary market cap thresholds. Its strong retail trading base and product expansion may have strengthened its position.
The sharp after-hours rise in stock reflects increased buying pressure, as funds tracking the S&P 500 must now purchase Robinhood shares. This forced buying often boosts stocks that enter the index. Robinhood’s Nasdaq debut in 2021 and its role in the meme stock era contributed to its wide recognition.
AppLovin’s Climb to Index Prominence
AppLovin will now join the S&P 500 after meeting all required criteria and outperforming rivals. The ad tech firm, which offers targeted advertising tools for mobile apps and games, posted explosive gains in 2023 and 2024.
With financial-tech additions already made in prior quarters, the committee may have opted for sector balance. The index remains dynamic, and further changes may follow in future rebalances. Still, Strategy’s omission marks a setback for digital asset proponents seeking broader mainstream inclusion.
The stock has risen over 700% since 2024 and added another 51% so far in 2025. Earlier this year, AppLovin made headlines by offering to acquire TikTok’s U.S. business, though no deal has materialized yet. This bold move, along with sustained growth, strengthened its position for inclusion.
The committee moved forward with AppLovin’s entry. It replaces MarketAxess in the index, reshaping passive fund exposure. Like Robinhood, AppLovin went public in 2021 and now joins the elite S&P 500 list.
