Robinhood stock surged over 15% on Monday, closing at a record high following the announcement that it will be included in the S&P 500 index. The company, along with AppLovin and Emcor, will officially join the index during its next rebalancing on September 22, as confirmed by S&P Dow Jones Indices in a recent statement. The move will see Robinhood and its contemporaries replace MarketAxess Holdings, Caesars Entertainment, and Enphase Energy.
AppLovin also saw a significant rise, ending the day up more than 11%, while Emcor’s stock remained relatively stable, finishing slightly down by less than 1%. Conversely, Caesars and MarketAxess closed the day nearly flat after experiencing earlier drops. Enphase Energy lost about 3% at one point but managed to reduce its losses, closing down just over 2%.
Robinhood’s ascent to inclusion in the S&P 500 reflects a remarkable trajectory for the online brokerage platform, which has experienced explosive growth in recent years. This surge in market activity was particularly pronounced during the pandemic, when retail trading flourished. The company’s trading revenue nearly doubled between the first and second quarters of 2020, as lockdown measures left many Americans with increased free time and decreased spending opportunities.
During the meme-stock frenzy of 2020 and 2021, particularly highlighted by the staggering rise of GameStop, Robinhood became the platform of choice for many traders. Its user base skyrocketed from 11.7 million at the end of 2020 to 21.3 million by mid-2021. In addition to expanding its stock trading capabilities, Robinhood also embraced cryptocurrency during this time, enabling users to trade Bitcoin amid the early 2020s crypto rally.
The company went public in July 2021, raising $2.1 billion in its IPO, and reported total revenue of $2.95 billion in 2024. Meanwhile, AppLovin, which specializes in analytics and advertising technology for app developers, saw its market capitalization soar from $13.5 billion at the end of 2023 to over $100 billion by December 2024, with a revenue total of $4.7 billion that same year.
Emcor, known for providing essential industrial and energy infrastructure to utilities and power plants, has positioned itself as a key player in supporting AI data centers, which are experiencing heightened demand as major technology companies invest in computing power for artificial intelligence applications. The company reported revenues of $14.57 billion in 2024.
Overall, the inclusion of these companies in the S&P 500 highlights a significant shift in the landscape of the largest publicly traded companies in the United States, showcasing the rapid evolution of the market amidst changing economic conditions and technological advancements.
