Robinhood stock drops after being left out of the S&P 500 reshuffle

Robinhood Markets and other strategy stocks dropped sharply after S&P Dow Jones Indices said Interactive Brokers Group will join the S&P 500, replacing Walgreens Boots Alliance. S&P Dow Jones Indices said Interactive Brokers will move from the S&P MidCap 400 to the S&P 500 on August ￰0￱ Energy will take its place in the MidCap ￰1￱ September 2, Kinetik Holdings will join the S&P SmallCap 600, replacing Pacific Premier ￰2￱ stock drops after S&P exclusion Investors and traders waiting for Robinhood to rise as one of America’s most influential crypto companies were disappointed after S&P Dow Jones Indices announced its latest reshuffle of the S&P ￰3￱ reshuffle left Robinhood out and caused its stock to drop ￰4￱ committee’s reasoning reminded people of what the S&P 500 represents and how its managers apply membership ￰5￱ has struggled with profitability and faced skepticism from analysts despite attracting millions of ￰6￱ the other hand, Interactive Brokers has proven its reliability through different market cycles and has a strong reputation for stability and profitability built over ￰7￱ makes it more qualified to be included in the list as its qualities matched the index methodologies that require proven financial stability and sustained profitability.

A firm added to the S&P 500 will see its valuation boosted overnight and become more popular with institutional investors because every index fund and exchange-traded fund that tracks the benchmark must buy its ￰8￱ Brokers now enjoys these benefits, while Robinhood must rely on organic demand from traders and long-term investors who already follow the ￰9￱ must provide steady financial results quarterly and prove its business model can withstand different market conditions without the volatility that sometimes defined its ￰10￱ stocks fall as market adjusts to reshuffle The announcement of the latest reshuffle of the S&P Dow Jones Indices, which added Interactive Brokers to the S&P 500 and left Robinhood out, also weighed on other speculative and strategy-driven ￰11￱ reassessed their bets and moved money out of names that looked unlikely to benefit from the ￰12￱ stocks lost momentum when S&P revealed changes that favored profitability and stability rather than new entrants with strong brand recognition but unproven earnings records.

Retail-driven names that survived on hope were lowered as investors realized these stocks would struggle to attract long-term institutional support without credibility of inclusion in the ￰13￱ that sense, the reshuffle also changed investors’ moods who hoped more companies would be recognized because of the hype behind ￰14￱ absence of high-profile newcomers like Robinhood reminded retail investors and momentum traders that popular companies will continue fighting for recognition without index ￰15￱ is because it attracts automatic buying from trillions of dollars in index funds and ￰16￱ $50 free to trade crypto when you sign up to Bybit now