Robinhood Misses S&P 500 Inclusion, Stock Slips
Robinhood’s stock took a hit after S&P Dow Jones Indices announced no changes to the S&P 500. Many investors had hoped Robinhood would join the prestigious index. The company’s stock fell about 5% on Monday, despite Bitcoin’s rise.
Robinhood was seen as a prime candidate for inclusion.By mid-2025, its market cap reached $66 billion, well above the $20.5 billion minimum. The company meets all S&P Global’s listing criteria. its stock doubled leading up to the quarterly rebalance.
However, the S&P 500 commitee kept the lineup intact. Adding a company requires removing another. The committee saw no need to swap anyone out this time. This decision was about timing and index procedure, not a reflection on Robinhood’s business.
Recent additions to the S&P 500 include Coinbase Global, DoorDash, TKO Group, Williams-Sonoma, and Expand Energy. These companies replaced Discover Financial, BorgWarner, Teleflex, Celanese, and FMC.
If Robinhood had been included, it would have seen a boost. S&P-tracking funds must buy shares, driving the price higher. The largest S&P 500 ETF (SPY) manages over half a trillion dollars, so any addition forces huge purchases.
robinhood remains well-positioned and meets S&P requirements. It might potentially be reconsidered when a slot opens up. The next S&P 500 rebalancing in September may offer a fresh possibility for Robinhood.
