In a noteworthy development for the financial markets, shares of advertising technology firm AppLovin and trading platform Robinhood Markets surged approximately 7% in after-hours trading on Friday. This increase followed the announcement from S&P Global that both companies are set to join the S&P 500 index, with the changes taking effect before trading begins on September 22.
According to the statement released by S&P Global, AppLovin will replace MarketAxess Holdings in the index, while Robinhood will take the place of Caesars Entertainment. The inclusion of both companies is expected to increase investment interest, as fund managers typically acquire shares of firms that are added to major indices like the S&P 500.
Historically, AppLovin faced scrutiny from short-seller Fuzzy Panda Research, which urged the committee overseeing the large-cap U.S. index to reconsider its inclusion. The company’s stock experienced a 15% dip in December when the committee opted for Workday instead. Similarly, Robinhood’s shares fell by 2% in June at the news of its exclusion from a quarterly index rebalancing.
The S&P 500 already reflects a heavy concentration of large technology firms, having added companies like Datadog and DoorDash earlier this year. Therefore, the addition of AppLovin and Robinhood further emphasizes the tech industry’s significant footprint within the index.
Both companies went public on Nasdaq in 2021. Robinhood has gained popularity among retail investors, particularly in relation to meme stocks such as AMC Entertainment and GameStop, while AppLovin has garnered attention with its impressive stock performance, which saw increases of 278% in 2023 and over 700% in 2024.
As of the previous close, AppLovin’s stock had risen by 51% so far in 2025. The company specializes in providing targeted advertising solutions for mobile applications and games. Earlier this year, AppLovin also expressed interest in acquiring TikTok’s U.S. operations from China’s ByteDance, amid ongoing regulatory discussions.
During Robinhood’s annual general meeting in June, co-founder and CEO Vlad Tenev addressed a shareholder’s inquiry about the company’s chances of joining the S&P 500, remarking that while it is a complex objective to plan for, he remains hopeful about their eligibility.
Currently, shares of MarketAxess have seen a decline of 17% year to date, and Caesars has experienced a drop of 21%, highlighting the contrasting trajectories of these companies as the market landscape evolves.
