S&P 500 Shifts Power to Fintech and Ad Tech Giants

AppLovin (APP) and Robinhood Markets (HOOD) will join the S&P 500 index on September 22, replacing MarketAxess Holdings and Caesars Entertainment, respectively, as part of a quarterly rebalancing by S&P Dow Jones Indices. The announcement triggered a 7% surge in AppLovin and Robinhood shares in after-hours trading on Friday, a typical market response as fund managers adjust holdings to reflect the index change. This marks the latest expansion of the S&P 500's tech-heavy composition, adding to recent inclusions such as Datadog and DoorDash.

AppLovin, which provides targeted advertising solutions for mobile apps and games, has seen significant share price gains in recent years, rising 278% in 2023 and over 700% in 2024. In 2025, the stock has increased by 51% as of the end of Friday’s regular session. The company, which went public on Nasdaq in 2021, previously attempted to acquire the U.S. TikTok business from ByteDance, though regulatory delays have prolonged the process. Earlier this year, Fuzzy Panda Research had urged the S&P 500 committee to exclude AppLovin, citing concerns over its valuation.

Robinhood, a leading retail trading platform known for its commission-free model, is also making history with its inclusion in the index. The company, which launched publicly in 2021, has become a favorite among retail investors and played a key role in the rise of meme stocks. Despite being excluded from a prior rebalancing in June, its shares have appreciated by more than 100% this year, reaching a market capitalization of approximately $91.5 billion. CEO Vlad Tenev had previously expressed cautious optimism about the company's eligibility for the S&P 500.

The rebalancing follows a pattern seen in recent quarters, where index providers adjust constituents both for business-specific reasons and through periodic reviews. For example, Interactive Brokers replaced Walgreens Boots Alliance in August, and Block (XYZ) was added after the acquisition of Hess. Emcor (EME) will also join the S&P 500, replacing Enphase Energy in the latest reshuffle. Companies that were delisted from the S&P 500, including MarketAxess and Caesars Entertainment, will move to the S&P SmallCap 600.

The inclusion of AppLovin and Robinhood reflects broader shifts in the U.S. financial landscape, particularly the growing influence of fintech and digital advertising. The S&P 500 typically includes companies with strong market fundamentals and long-term growth potential, and both firms have demonstrated resilience in competitive markets. The move is expected to increase institutional interest in their stocks and provide additional capital for growth initiatives.

Shares of MarketAxess, which focuses on fixed-income trading, have declined by 17% year to date, while Caesars Entertainment and Enphase Energy are set to move to the S&P SmallCap 600. The rebalancing process reinforces the index's role in capturing market dynamics and reflecting evolving investor preferences. With the changes effective from the market open on September 22, the index now includes a mix of innovative technology and financial services firms, further cementing the S&P 500’s role as a benchmark for U.S. equity performance.

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[1] Robinhood, AppLovin Additions Lead S&P 500 Index... (https://www.investopedia.com/robinhood-applovin-additions-lead-s-and-p-500-index-changes-11804139)

[2] S&P 500 Stocks: AppLovin, Robinhood To Join Index... (https://www.investors.com/news/sp-500-index-applovin-robinhood/)

[3] Robinhood to join S&P 500 in watershed moment for US... (https://finance.yahoo.com/news/applovin-robinhood-emcor-set-join-214758764.html)