In the Latest Rebalancing, Robinhood, Applovin, and Emcor Will Join the S&P 500

Robinhood Markets Inc. has officially earned a place in the S&P 500, signaling a turning point for the online brokerage that became synonymous with the pandemic-era retail trading boom. The company will be added during the benchmark index’s latest quarterly rebalance, according to S&P Dow Jones Indices on Friday.

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AppLovin Corp. and Emcor Group Inc. will also be included in the index, while MarketAxess Holdings Inc., Caesars Entertainment Inc., and Enphase Energy Inc. will be removed ahead of the September 22 market open.

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Once seen as a symbol of speculative trading, Robinhood now satisfies the S&P’s requirements after demonstrating consistent profitability and meeting market cap and liquidity thresholds. Its inclusion ensures the trading app becomes part of portfolios managed by pension funds, ETFs, and other index-tracking vehicles across the globe. Shares of Robinhood jumped more than 7% in after-hours trading following the news.

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The announcement underscores how quickly retail-driven firms can evolve from market outsiders to key players at the heart of U.S. equities. From meme stocks to crypto assets, the forces reshaping modern markets are now embedded in Wall Street’s most widely followed benchmark.

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For Robinhood, the milestone represents the next stage in its transformation. Founded in 2013 in Menlo Park, California, by current CEO Vlad Tenev and Stanford classmate Baiju Bhatt, the platform opened the door for everyday investors to trade stocks, options, and cryptocurrencies with ease. Over time, it has chipped away at the dominance of established brokerages.

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The company made its public debut in July 2021, right in the middle of the meme stock frenzy. Its simple, mobile-first design turned it into a preferred venue for retail investors chasing highly speculative names such as GameStop Corp. and AMC Entertainment Holdings Inc. In the first quarter of 2025, Robinhood reported a 77% year-over-year jump in transaction-based revenues, fueled largely by cryptocurrency activity.

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The addition also places Robinhood alongside other high-profile firms with ties to digital assets, including Coinbase Global Inc., the largest U.S. crypto exchange, and Jack Dorsey’s fintech company Block Inc.

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Robinhood isn’t the only name making headlines in the reshuffle. AppLovin Corp., a leader in mobile app marketing, recently delivered second-quarter earnings that surpassed expectations, helping its stock more than double since April. Emcor Group Inc., a major player in construction and facilities services, also impressed with quarterly revenue that topped analyst estimates.

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By contrast, the three companies being removed MarketAxess, Caesars Entertainment, and Enphase Energy will face selling pressure from passive funds realigning with the index’s new structure.

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Inclusion in the S&P 500 often serves as a catalyst for higher visibility and stronger demand. Because trillions of dollars are benchmarked to the index, joining the S&P can provide a tailwind for a company’s shares as index funds and ETFs adjust their holdings.

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Eligibility is determined by several criteria, including profitability, share liquidity, and market capitalization which currently must be at least $22.7 billion. Failure to meet those standards can result in removal, as seen with Walgreens Boots Alliance Inc., which was replaced by Interactive Brokers Group Inc. in August. Earlier this year, cloud software company Datadog Inc. also secured entry in the previous quarterly rebalance.

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For Robinhood, the achievement cements its transition from a pandemic-fueled trading app to a mainstay in institutional portfolios. While critics once dismissed it as a speculative gateway for meme stocks, its financial performance and expanding influence have now placed it firmly within the core of U.S. equities.

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As index funds and global investors absorb Robinhood into their allocations, the company’s profile on Wall Street is set to grow even further. For retail investors who helped propel the platform to prominence, its elevation to the S&P 500 is a reminder of how quickly the financial landscape can shift and how firms once considered disruptors can become part of the establishment.

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