Robinhood Markets (HOOD), AppLovin Corp. (APP), and Emcor Group (EME) are set to join the S&P 500 later this month in the index provider’s quarterly rebalance.
Their inclusion, effective before markets open on September 22, will come at the expense of MarketAxess Holdings (MKTX), Caesars Entertainment (CZR), and Enphase Energy (ENPH), which will be moved to smaller-cap indexes.
The news sparked a sharp reaction on Monday: Robinhood shares climbed nearly 14%, while AppLovin surged more than 10%, both extending already strong momentum. For retail investors, the significance is clear: these companies are about to become core holdings in index funds, retirement plans, and institutional portfolios worldwide.
Why AppLovin’s Rally Stands Out
AppLovin’s ascent has been one of the more remarkable stories in tech this year. From a low of $82.51 in the past 52 weeks, the stock has rocketed more than 550% to reach new highs. As of Friday’s close, the company carried a market cap of roughly $169 billion.
The fundamentals have kept pace with the rally. In its most recent quarter, revenue surged 77% year over year to $1.26 billion, while adjusted EBITDA nearly doubled. Net income jumped 156%. Growth has been powered by its MAX Marketplace and the rollout of AI-driven ad platforms like Axon Ads Manager, which expand its reach well beyond gaming into e-commerce and broader mobile advertising.
Analysts project earnings per share to climb 86% in the third quarter, with full-year profits nearly doubling. Longer term, forecasts call for continued revenue growth of more than 25% into 2026, underlining expectations that AppLovin is evolving into a digital advertising heavyweight.
AppLovin’s ascent has been one of the more remarkable stories in tech this year. From a low of $82.51 in the past 52 weeks, the stock has rocketed more than 550% to reach new highs. As of Friday’s close, the company carried a market cap of roughly $169 billion.
The fundamentals have kept pace with the rally. In its most recent quarter, revenue surged 77% year over year to $1.26 billion, while adjusted EBITDA nearly doubled. Net income jumped 156%. Growth has been powered by its MAX Marketplace and the rollout of AI-driven ad platforms like Axon Ads Manager, which expand its reach well beyond gaming into e-commerce and broader mobile advertising.
Analysts project earnings per share to climb 86% in the third quarter, with full-year profits nearly doubling. Longer term, forecasts call for continued revenue growth of more than 25% into 2026, underlining expectations that AppLovin is evolving into a digital advertising heavyweight.
Robinhood’s Long-Awaited Validation
For Robinhood, the S&P 500 nod serves as a form of validation after a rocky post-IPO stretch. With a fully diluted market capitalization of about $93 billion, the trading platform had been floated as a potential addition in recent rebalancing rounds, only to be passed over.
The announcement removes that overhang. Index inclusion not only boosts credibility with institutional investors but also locks in steady demand for its shares from index-tracking funds. For retail investors, Robinhood’s new status underscores its staying power as a platform that has reshaped equity and options trading for millions of individuals.
For Robinhood, the S&P 500 nod serves as a form of validation after a rocky post-IPO stretch. With a fully diluted market capitalization of about $93 billion, the trading platform had been floated as a potential addition in recent rebalancing rounds, only to be passed over.
The announcement removes that overhang. Index inclusion not only boosts credibility with institutional investors but also locks in steady demand for its shares from index-tracking funds. For retail investors, Robinhood’s new status underscores its staying power as a platform that has reshaped equity and options trading for millions of individuals.
Conclusion
S&P 500 membership carries prestige, liquidity, and consistent buying support from passive funds. For AppLovin, it comes at a time of explosive growth in its ad tech business, while for Robinhood it provides long-awaited recognition of its scale in financial services.
Both stocks have already rallied on the news, but inclusion in the benchmark index could mark the beginning of a new chapter—one where institutional capital, broader visibility, and market credibility play a larger role in shaping their trajectory. For investors weighing opportunities, the September 22 rebalance will be a milestone worth watching.
S&P 500 membership carries prestige, liquidity, and consistent buying support from passive funds. For AppLovin, it comes at a time of explosive growth in its ad tech business, while for Robinhood it provides long-awaited recognition of its scale in financial services.
Both stocks have already rallied on the news, but inclusion in the benchmark index could mark the beginning of a new chapter—one where institutional capital, broader visibility, and market credibility play a larger role in shaping their trajectory. For investors weighing opportunities, the September 22 rebalance will be a milestone worth watching.
Considering a $1,000 investment in these companies?
Our team at Stock Investor carefully curated a list of top stocks with the potential for significant returns, suitable for beginners and seasoned investors alike who are eager to learn a trade and unearth the best stocks to buy. Though not featured in this article, these selected stocks could be game-changers in the future.For those seeking dynamic trading experiences, consider joining our Swing Trade Alerts, Option Income Alert, or our Trading Room. Take advantage of our special offer today, starting at just $1 in the first month.
Unlock the secrets of Smart Money
Explore how billionaires and institutions are influencing the market. Follow their every move with DarkOption Flow and stay updated on essential market insights. Begin your journey to informed investing today!
Education
And if you're a fan of Invest opedia, you'll appreciate what we offer at SharperTrades even more. Explore our comprehensive option trading course and technical trading course, where you can learn trading, analyze stocks, delve into chart patterns for stocks, and gain invaluable insights for making the best company investments.
Unlock Your Stock Market Edge with SharperTrades. Dive into powerful trading tools, learn a trade, and receive expert guidance. Stay up-to-date with regular market updates. Learn trading, basics of investing, and how to pick the best stocks to buy. Whether you're a beginner or seasoned investor and trader, we've got you covered. Get started for free, today!
Comments
Post a Comment