S&P 500 Index Excludes Strategy, Robinhood Makes Cut

Strategy (MSTR) fails to make the S&P 500 index, causing its shares to drop over 2%. However, cryptocurrency-friendly brokerage platform Robinhood and mobile technology company AppLoving join the index. Casino company Caesars Entertainment, financial technology company MarketAxess Holdings, and clean energy company Enphase Energy are leaving the index. Bitcoin is currently trading at $110,832.

In a significant move, the S&P 500 index committee announced changes to the index's composition, with notable additions and subtractions. Among the changes, Strategy (MSTR) failed to make the cut, causing its shares to drop by over 2%. Conversely, cryptocurrency-friendly brokerage platform Robinhood Markets Inc. (HOOD) and mobile technology company AppLovin Corp. (APP) joined the index. Additionally, casino company Caesars Entertainment (CZR), financial technology company MarketAxess Holdings (MKT), and clean energy company Enphase Energy (ENPH) are leaving the index [2].

The S&P 500 index committee typically announces quarterly changes, and this quarter's reshuffle was expected to include several notable additions and subtractions. The committee's decision to exclude Strategy, which has been a candidate for several quarters, came as a surprise to many investors. The software company, known for its cryptocurrency holdings, had been a strong contender for inclusion, but it did not meet the index's financial viability criteria.

Meanwhile, Robinhood and AppLovin's inclusion in the S&P 500 is seen as a positive development for both companies. Robinhood, a popular trading platform, has been a candidate for inclusion in the index for some time. Its addition is seen as a recognition of its growing influence in the financial technology sector. AppLovin, a mobile technology company, is the largest eligible company to be added to the index, with a market capitalization of $164 billion [2].

Enphase Energy's exclusion from the index is notable, given its recent struggles. The clean energy company has seen its shares drop significantly in recent months, with a 48.4% decline since the beginning of the year. The company's shares are currently trading at $36.82, down 69.3% from its 52-week high of $119.74. The company's exclusion from the S&P 500 index may exacerbate its current challenges, as the index's exclusion can lead to reduced liquidity and investor interest [3].

The S&P 500 index changes are significant for the companies involved, as inclusion in the index can lead to increased liquidity, investor attention, and a metaphorical badge of legitimacy. However, the impact of the changes will depend on how the market reacts to the new additions and subtractions. As of the current date, the changes have had a mixed impact on the stocks involved, with some experiencing significant price movements.

References:

[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3US0SZ:0-tesla-climbs-on-record-1-trillion-performance-linked-package-for-musk/
[2] https://www.morningstar.com/news/marketwatch/20250905277/sp-500-changes-are-due-out-soon-and-this-could-be-a-big-update
[3] https://www.tradingview.com/news/stockstory:ee1732b73094b:0-why-enphase-enph-shares-are-sliding-today/