Robinhood stock rallies as company is set to join S&P 500

Robinhood (HOOD) stock was up more than 8% Monday morning on the news that the company will soon be included in the S&P 500 (^GSPC).

Robinhood, AppLovin (APP), and Emcor (EME) are set to join the S&P 500 during the index’s next rebalancing on Sept. 22, S&P Dow Jones Indices said in a statement Friday. The three companies will replace MarketAxess Holdings (MKTX), Caesars Entertainment (CZR), and Enphase Energy (ENPH).

AppLovin and Emcor were up more than 9.5% and more than 2%, respectively, through premarket trading Monday morning. MarketAxess, Caesars, and Enphase were roughly flat, while Enphase lost a bit over 0.5%.

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Robinhood’s move onto the list of the largest publicly traded companies in the US follows a run that saw the easy-entry brokerage platform explode in usage over the past several years.

The trading platform’s boom was especially fueled by the rise in retail trading amid the depths of the pandemic, when Robinhood saw its trading revenue nearly double between Q1 2020 and Q2 2020 as the US plunged into lockdowns and left many Americans with a lot more free time and heavily decreased spending.

For traders jumping onto the meme-stock frenzy of 2020 and 2021, led in large part by the more than 2,000% gain in GameStop, Robinhood became a platform of choice — its users swelling from 11.7 million users to 21.3 million between December 2020 and June 2021. The brokerage also became an early adopter of cryptocurrency, allowing users to buy and sell bitcoin through the crypto rally of the early 2020s.

For its explosive pandemic-era growth, the company raised $2.1 billion in its July 2021 IPO. The company’s revenue totaled $2.95 billion on 2024.

AppLovin, which provides tools including analytics, advertisement technology, and monetization software to developers building apps, saw its market cap grow from around $13.5 billion at the end of 2023 to more than $100 billion by December 2024, with revenue of $4.7 billion that year.

Emcor provides industrial and energy infrastructure to utilities, power plants, and refineries. The company has made a play to be one of the leading infrastructure providers for AI data centers, which are experiencing a surge in growth as Big Tech pushes hard to add compute power and energy for the AI arms race. Emcor booked revenue of $14.57 billion in 2024.

Jake Conley is a breaking news reporter covering US equities for Yahoo Finance. Follow him on X at @byjakeconley or email him at [email protected].