Robinhood falls as it doesn’t wind up in S&P 500 despite analyst speculation
Shares of Robinhood Markets slumped after analysts’ speculation that the company would be added to the S&P 500 didn’t come to fruition.
(Robinhood Markets, Inc. is the parent company of Sherwood Media, an independently operated media company.)
The index’s owner said late Friday that its composition, which is examined quarterly, wouldn’t change. In the weeks leading up to the decision, some analysts had floated the idea that Robinhood could be a candidate for inclusion as it has ticked off several key boxes — durable profitability, market cap, and liquidity among them.
Shares of AppLovin and Carvana, which had also been mentioned as possible additions to the index, also fell in early trading.
Shares of Robinhood have been on a tear of late, likely somewhat because of the potential for inclusion in the index. A stock’s inclusion in the S&P 500 triggers buying by funds that track the blue-chip stock index. Even with Monday morning’s drop, the stock is still up about 25% in the past month.
The index’s owner said late Friday that its composition, which is examined quarterly, wouldn’t change. In the weeks leading up to the decision, some analysts had floated the idea that Robinhood could be a candidate for inclusion as it has ticked off several key boxes — durable profitability, market cap, and liquidity among them.
Shares of AppLovin and Carvana, which had also been mentioned as possible additions to the index, also fell in early trading.
Shares of Robinhood have been on a tear of late, likely somewhat because of the potential for inclusion in the index. A stock’s inclusion in the S&P 500 triggers buying by funds that track the blue-chip stock index. Even with Monday morning’s drop, the stock is still up about 25% in the past month.
