Robinhood (HOOD) Stock: Rallies as Trading Platform Joins S&P 500 Index September 22

TLDR

Table of Contents

Robinhood (HOOD) stock jumped over 7% in premarket trading after being selected to join the S&P 500 index on September 22
The trading platform will replace Caesars Entertainment (CZR) in the flagship index alongside AppLovin and Emcor Group
Robinhood has a market cap of nearly $90 billion, making it one of the most valuable firms previously excluded from the S&P 500
The company’s second quarter revenue jumped 45% year-over-year to $989 million with net income more than doubling to $386 million
Retail sentiment on Stocktwits shows bullish territory with users predicting gains similar to Palantir’s 13-14% rise after its S&P inclusion

Robinhood stock surged over 8% in premarket trading Monday morning following news that the retail trading platform earned a spot in the S&P 500 index. The S&P Dow Jones Indices announced Friday that Robinhood will join the benchmark index during its September 22 rebalancing.

The commission-free trading app will replace Caesars Entertainment in the closely watched index. AppLovin and Emcor Group will also join the S&P 500 during the same rebalancing period.

Robinhood $HOOD rallied 11% on news that it will be added to the S&P 500 📈
It will be included in the index before market open on September 22, 2025 🚀 pic.twitter.com/xM1Od3313U
— Trader Edge (@Pro_Trader_Edge) September 6, 2025

With a market capitalization of nearly $90 billion, Robinhood was one of the most valuable companies still excluded from the index. The inclusion ends a waiting period that many investors had been anticipating since the company went public in July 2021.

Index Funds Drive New Investment Flow

The S&P 500 addition means index funds that track the benchmark will need to buy Robinhood shares. This creates automatic demand from passive investment vehicles including 401k plans and exchange-traded funds.

Retail investors on social media platforms expressed optimism about the move. One Stocktwits user noted that the inclusion “changes this stock completely” because retirement accounts will now automatically invest in the company.

Other users compared the potential gains to Palantir’s performance when it joined the index. That stock rose 13-14% following its inclusion announcement.

Strong Financial Performance Supports Growth

Robinhood’s second quarter results showed strong momentum across key metrics. Revenue jumped 45% year-over-year to $989 million while net income more than doubled to $386 million.

The company has benefited from increased trading activity driven by cryptocurrency volatility and equity market swings. Robinhood stock has more than doubled this year as crypto prices rallied and market uncertainty created more trading opportunities.

Beyond its core trading platform, the company continues expanding into wealth management services. Chief Financial Officer Jason Warnick said in July that Robinhood was moving further into lending after positive feedback on home loans from Gold card members.

The trading platform exploded in popularity during the pandemic when lockdowns left Americans with more free time and reduced spending. User numbers swelled from 11.7 million to 21.3 million between December 2020 and June 2021 during the meme stock trading frenzy.

Robinhood became an early adopter of cryptocurrency trading, allowing users to buy and sell Bitcoin through the platform. This positioned the company well for the crypto rally of the early 2020s.

The company raised $2.1 billion in its July 2021 initial public offering. Total revenue reached $2.95 billion in 2024 as the platform continued growing its user base and expanding services.

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