AppLovin and Robinhood to Join S&P 500 Index
S&P Global announced that advertising technology firm AppLovin and stock trading platform Robinhood Markets will be added to the S&P 500 index effective before market open on September 22. AppLovin will replace MarketAxess Holdings, and Robinhood will take the place of Caesars Entertainment.
Following the announcement, shares of both AppLovin and Robinhood rose approximately 7% in extended trading on Friday. This reaction aligns with the typical market response to index inclusions, as institutional fund managers often purchase shares to mirror the updated index composition.
Background and Market Context
AppLovin and Robinhood both went public on Nasdaq in 2021. AppLovin specializes in delivering targeted advertisements within mobile applications and games, and its stock has experienced exceptional growth, surging 278% in 2023 and over 700% in 2024. However, in 2025, AppLovin’s gains have moderated to 51% as of the market close on Friday.
Robinhood has established itself as a favored platform among retail investors, particularly those engaging in meme stock trading, such as AMC Entertainment and GameStop. Despite its popularity, Robinhood’s shares declined 2% in June when it was excluded from a prior S&P 500 quarterly rebalancing.
Earlier this year, AppLovin made headlines by proposing to acquire the U.S. operations of TikTok from ByteDance, a deal that has been delayed multiple times by the U.S. government, most recently in June.
Index Changes and Market Impact
The removal of MarketAxess Holdings and Caesars Entertainment reflects broader market dynamics. MarketAxess, a fixed-income trading platform, has seen its shares drop 17% year-to-date, while Caesars Entertainment, a hotel and casino operator, has declined 21% in the same period.
AppLovin’s inclusion follows earlier additions of technology-focused companies like Datadog and DoorDash, highlighting the sustained dominance of large tech firms within the S&P 500.
Company Perspectives
At Robinhood’s annual general meeting in June, CEO Vlad Tenev commented on the prospects of joining the S&P 500, describing it as “a difficult thing to plan for” but expressing optimism about the company’s eligibility.
Despite some past skepticism—including a recommendation in March by short-seller Fuzzy Panda Research to exclude AppLovin from the index—both companies have secured their positions in the benchmark large-cap index.
FinOracleAI — Market View
The inclusion of AppLovin and Robinhood in the S&P 500 is likely to have a positive short-term effect on their stock prices, driven by index fund rebalancing and increased institutional demand. Both companies have strong growth narratives, although AppLovin’s recent valuation surge and Robinhood’s retail investor base introduce some volatility risks. Market participants should monitor trading volumes and any regulatory developments, particularly concerning AppLovin’s TikTok acquisition attempt.
Impact: positive
