Robinhood's S&P 500 Win, MicroStrategy's Bitter Omission Highlight Tech's Tight Index Race

S&P 500 Adds AppLovin, Robinhood, Emcor, Excludes MicroStrategy

Three new companies—AppLovin Corp. (APP), Robinhood Markets (HOOD), and Emcor Group Inc. (EME)—have been added to the S&P 500 index ahead of the market open on September 22, as part of the index's quarterly rebalancing. They replace Caesar's Entertainment (CZR), MarketAxess Holdings (MKTX), and Enphase Energy (ENPH), respectively. This update reflects the S&P 500's ongoing effort to maintain representation of the largest and most influential U.S. public companies.

Robinhood’s inclusion marks a significant milestone for the crypto and fintech sectors. The trading platform will become the third crypto-related company in the index, joining Coinbase (COIN) and Block (XYZ). Its stock surged 7% after market hours following the announcement. Robinhood, which launched tokenized stocks for companies like OpenAI earlier this year, has been at the center of regulatory and market attention for its role in reshaping retail investing and digital asset access.

AppLovin, a mobile app monetization company, also made the cut. Known for its expertise in digital advertising and app user acquisition, the firm has grown steadily over the past few years. Meanwhile, Emcor, a construction and facilities services company, replaces Enphase Energy, highlighting the index’s shift toward more established and diversified industrial players.

Notably, MicroStrategy (MSTR), led by Michael Saylor, did not secure a spot in the S&P 500 despite meeting all the eligibility criteria. The company, a major corporate Bitcoin holder with 636,505 BTC valued at approximately $70 billion, had been widely speculated to be included due to its recent strong performance. Its stock dropped nearly 3% after hours, erasing earlier gains for the day. The decision disappointed some in the crypto community, as the inclusion would have exposed millions of investors to the firm, potentially boosting its visibility and market dynamics.

The S&P 500’s quarterly rebalancing process typically occurs in March, June, September, and December. The September update was anticipated due to several companies reaching privatization or merger milestones earlier this year. For example, Interactive Brokers (IBKR) was added in August to replace Walgreens Boots Alliance (WBA), which is being taken private. The rebalancing also reflects a broader industry trend toward tech, fintech, and construction, with less emphasis on energy and consumer discretionary sectors.

Analysts note that the inclusion of Robinhood and AppLovin underscores the index’s evolving composition in response to market dynamics. While the absence of MicroStrategy highlights the competitive nature of the selection process, it also reinforces the S&P 500’s data-driven approach to maintaining its relevance as a barometer of U.S. equity performance. The new entrants are expected to see increased institutional buying as index funds adjust their portfolios, potentially boosting their liquidity and market capitalization.

Source: [1] MSTR News: Strategy Stock Falls as Robinhood Beats It to S&P 500 Inclusion (https://www.coindesk.com/business/2025/09/05/michael-saylor-s-strategy-snubbed-by-s-and-p-500-amid-robinhood-s-surprise-inclusion) [2] Michael Saylor's MicroStrategy Misses S&P 500, Robinhood to Make Unexpected Entry (https://www.thestreet.com/crypto/markets/hopes-dashed-as-microstrategy-snubbed-in-s-p-500-rebalance) [3] Robinhood, AppLovin Additions Lead S&P 500 Index Changes (https://www.investopedia.com/robinhood-applovin-additions-lead-s-and-p-500-index-changes-11804139)