AppLovin, Robinhood surge 7% on S&P 500 inclusion

On Friday, S&P Global announced a quarterly adjustment to the constituents of the S&P 500 index, revealing that advertising technology company AppLovin (APP.US) and stock trading application Robinhood (HOOD.US) would be formally added to the index. Following this announcement, both companies experienced a significant surge in their stock prices, each rising approximately 7% in after-hours trading.

The adjustment is set to take effect before the U.S. stock market opens on September 22. Post-adjustment, AppLovin will replace MarketAxess Holdings, while Robinhood will take the place of Caesars Entertainment. Historically, inclusion in the S&P 500 index has often led to an increase in stock prices, as index funds and passive investment portfolios are required to purchase the relevant stocks to match the index's composition.

Earlier this year, Datadog and DoorDash were also added to the S&P 500, reflecting the growing influence of large technology and digital economy companies in the U.S. stock market. AppLovin, a software company that provides precise ad targeting for mobile applications and games, has shown impressive performance since its NASDAQ listing in 2021. This year, AppLovin also made headlines with its proposal to acquire TikTok's U.S. business, which garnered significant attention.

In December of last year, when the S&P committee chose Workday over AppLovin for inclusion in the index, AppLovin's stock price plummeted by 15%. Additionally, in March, the short-selling firm Fuzzy Panda Research publicly urged the S&P committee not to include AppLovin in the index.

Robinhood, which also went public on NASDAQ in 2021, is a popular platform among retail investors, particularly known for its involvement in the trading of "MEME stocks." Robinhood has previously attempted to join the S&P 500 index on multiple occasions but failed in December 2024 and June 2025. Despite these setbacks, the company's inclusion in the index this time around marks a significant milestone.

This latest adjustment to the S&P 500 index underscores the increasing prominence of technology and digital economy companies in the U.S. stock market. The inclusion of AppLovin and Robinhood is expected to further solidify their positions as key players in their respective industries, driving innovation and growth in the digital advertising and retail investment sectors.