Michael Strategy Fails To Make S&P 500 Listing Stock Drops

TLDR

Table of Contents

Strategy (MSTR) excluded from S&P 500 as Robinhood, AppLovin, and Emcor join in the latest index update.
MSTR stock fell 2% in after-hours trading following S&P 500 exclusion news.
Robinhood stock surged 7.5% after S&P 500 inclusion was announced by S&P Global.
Index changes will be effective before the market opens on September 22, 2025.

Michael Saylor’s firm, Strategy (MSTR), has been left out of the latest S&P 500 rebalancing, causing a dip in its share price. While many investors expected the company’s inclusion, S&P Global selected Robinhood, AppLovin, and Emcor Group instead. Following the announcement, MSTR shares slipped by around 2% in after-hours trading. The index changes take effect before markets open on September 22.

Strategy Excluded as Robinhood, AppLovin, and Emcor Join S&P 500

S&P Global confirmed that Robinhood Markets, AppLovin, and Emcor Group will join the S&P 500 on September 22, 2025. These additions came as part of the index’s quarterly rebalancing process. Following the announcement, shares of Robinhood and AppLovin jumped sharply in post-market trading, while Strategy’s stock saw a decline.

MicroStrategy shares dropped by nearly 2% after hours. The company had been seen as a potential addition due to its market capitalization and trading volume. However, the final selection did not include Strategy, disappointing investors who had priced in the possibility of its entry into the index.

Robinhood’s stock, which ended regular trading down by 1.61%, rose over 7.5% in extended hours to $108.90. AppLovin also recorded gains. These movements reflect the strong demand from index-tracking funds that must adjust their portfolios ahead of the changes. The rebalancing will be effective before the market opens on September 22.

Crypto Exposure Seen as a Risk for Index Inclusion

MicroStrategy is widely known for its large Bitcoin holdings. The company owns billions of dollars worth of the cryptocurrency, making its stock closely tied to crypto market trends. Some analysts believe this exposure may have worked against it during the S&P 500 review process.

Jeff Park, Chief Investment Officer at ProCap BTC and former executive at Bitwise, said the outcome was expected. “The reason I knew MSTR was not going to get into the index better than anyone else is because I understand incentives better than anyone else,” Park said in a post on social media platform X (formerly Twitter).

He explained that the S&P committee considers more than just financial figures. It also looks at broader market conditions and how each company fits into the overall index structure. According to Park, crypto-focused firms still face challenges when seeking institutional recognition in traditional benchmarks like the S&P 500.

Although MicroStrategy recently resolved a class action lawsuit related to its Bitcoin accounting practices, the company’s unique structure and asset strategy may have raised concerns for the committee.

Future Consideration Still Possible Despite Current Exclusion

While Strategy did not make it into the index this time, companies often go through several evaluations before being added. S&P Global has not ruled out the possibility of future inclusion for firms that meet its criteria. Strategy may still be reviewed in upcoming rebalancing cycles.

Investor reaction to the exclusion was swift but measured. Many market participants had already placed bets on a potential listing, which made the announcement a setback for short-term expectations. The stock’s drop reflected this disappointment, though it was less sharp than some had predicted.

S&P Global said the changes announced will reflect in the index from September 22. Index-tracking funds and ETFs are expected to rebalance their holdings before this date. This shift will increase the exposure of newly included companies across retail and institutional portfolios.

Despite the current outcome, Strategy remains one of the most closely watched tech firms with a strong financial base. It continues to hold a prominent place in the market, especially in the Bitcoin space, and may remain under review for future index updates.

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