The S&P 500's Tech Rebalancing: Robinhood Rises, MicroStrategy Falls

Robinhood Markets Inc. (NASDAQ:HOOD) was unexpectedly added to the S&P 500 index, marking a significant milestone for the financial technology company. The inclusion, effective September 22, 2025, came as a surprise to many market observers and immediately bolstered Robinhood’s stock price by approximately 7% after the close of trading. The decision underscores the growing recognition of fintech firms in the broader market and highlights Robinhood’s evolving role in the financial services landscape. The company, which provides commission-free trading and has expanded into crypto and prediction markets, has seen its market capitalization grow to $88.51 billion as of the latest data [2].

In contrast, MicroStrategy Inc. (MSTR), led by CEO Michael Saylor, was not selected for inclusion despite meeting all the criteria for the index. This exclusion resulted in a nearly 3% drop in the company’s stock price in after-hours trading, effectively erasing gains from the previous day. MicroStrategy has been a major corporate Bitcoin holder and had previously been considered a strong candidate for S&P 500 inclusion due to its robust performance in recent quarters. The decision to pass on the company reflects the S&P 500’s criteria and selection process, which considers factors beyond just financial metrics, such as market influence and sector representation [2].

Alongside Robinhood, AppLovin Corp. was also added to the S&P 500. AppLovin, a leading mobile app and advertising technology company, has experienced significant growth in recent years, driven by the increasing demand for mobile content and digital marketing solutions. The inclusion of AppLovin further highlights the index’s focus on innovative technology firms that are shaping the digital economy. This move signals a continued emphasis on the tech sector within the S&P 500, which currently includes other major players such as Coinbase and Block (formerly Square) [2].

The addition of Robinhood and AppLovin, as well as the exclusion of MicroStrategy, has sparked discussions about the evolving nature of the S&P 500 and its composition. The index, a barometer of large-cap U.S. equities, has seen a shift in recent years toward technology and fintech companies, reflecting broader trends in the economy. These changes are influenced by the performance of key sectors and the increasing role of digital innovation in financial services. The inclusion of fintech firms like Robinhood signifies a growing acceptance of technology-driven financial platforms in the traditional investment ecosystem [1].

The broader market reacted mixed to these developments. U.S. futures for the S&P 500 rose slightly, while European stock indices showed varied performance. The Stoxx Europe 600 edged up 0.1% in early trading, with some stocks rising and others falling. The performance of major European multinational companies, known as the GRANOLAS, has declined in recent months due to shifting trade policies, currency volatility, and softer demand from key international markets. This contrasts with the U.S. market, where large-cap technology firms continue to dominate and drive overall market performance [3].

As the S&P 500 continues to evolve, the inclusion or exclusion of specific companies will remain a topic of interest for investors and analysts. The decision to add Robinhood and AppLovin reflects the index’s responsiveness to market dynamics and the growing importance of fintech and tech sectors. For MicroStrategy, the continued focus on its strategic investments in Bitcoin and corporate strategy will likely remain a key point of discussion among investors and market participants [2].

Source: [1] Robinhood Markets: HOOD Stock Price Quote & News (https://robinhood.com/us/en/stocks/HOOD/) [2] MSTR News: Strategy Stock Falls as Robinhood Beats It to ... (https://www.coindesk.com/business/2025/09/05/michael-saylor-s-strategy-snubbed-by-s-and-p-500-amid-robinhood-s-surprise-inclusion) [3] U.S. Futures, European Stocks Mixed (https://www.morningstar.com/news/dow-jones/202509041471/us-futures-european-stocks-mixed)