AppLovin & Robinhood Rally As Stocks Added To S&P 500 (APP, HOOD, EME)

AppLovin (NASDAQ:APP) and Robinhood Markets' stock prices (NASDAQ:HOOD) are experiencing significant gains following the announcement of their inclusion in the S&P 500 index. The move, effective September 22, is expected to drive substantial demand from passive investment funds, boosting both stocks.

Applovin's stock is 7.6% higher in the pre-market session at $527.50, indicating a new high could be on the cards at the open. The previous high of $525 made in February is firmly under threat.

Robinhood's stock is also trading impressively at $108.65, up 7.31% in the pre-market, with it's respective high at $117.70 hit just last month.

This surge follows the S&P Dow Jones Indices' announcement on Friday, that APP, HOOD, and Emcor Group (EME) would replace MarketAxess Holdings (MKTX), Caesars Entertainment (CZR), and Enphase Energy (ENPH) in the benchmark index.

Emcor Group has also seen a shares gain, although more modestly at 2.2%. The anticipated influx of capital from index-tracking funds adjusting their portfolios to reflect the new composition is a key driver of this upward momentum.

The market's positive reaction contrasts with previous instances where both AppLovin and Robinhood were overlooked for S&P 500 inclusion. In June 2025, Robinhood's shares declined by 3.2% in premarket trading after failing to secure a spot in the index during a quarterly rebalancing.

Similarly, AppLovin experienced a 15% drop back in December when it was passed over in favour of other companies. These past rejections highlight the significance of this inclusion and the pent-up demand from investors who had anticipated this milestone.

Inclusion in the S&P 500 is widely regarded as a validation of a company's financial health and market relevance. It typically leads to increased demand for a company's stock, as passive investment funds and exchange-traded funds (ETFs) that track the index are compelled to purchase shares of the newly added companies.

This heightened demand from passive funds is expected to attract more institutional investors and enhance liquidity for AppLovin, Robinhood, and Emcor Group.