Shares of Robinhood Markets dropped more than 6% on Monday morning following news that the online brokerage was not included in the latest quarterly rebalance of the S&P 500, CNBC reports.
The announcement, made after markets closed on Friday, disappointed some investors who had speculated that Robinhood could soon be added to the influential index.
The S&P 500 remained unchanged in the most recent reshuffling by S&P Dow Jones Indices, despite prior expectations from some analysts that Robinhood was a likely candidate. Last week, Bank of America named the company as a top contender for inclusion, noting its strong recent performance and improved fundamentals.
Robinhood’s stock had climbed 3.3% on Friday, contributing to a weekly gain of over 13%. The optimism was partly driven by hopes that inclusion in the S&P 500 would bring a surge in demand from passive investment funds, which often track the index and automatically purchase shares of newly added companies. This dynamic has been seen in other recent additions to the index, such as Coinbase, which jumped 24% the day after it was announced as a new S&P 500 component.
Despite Monday’s pullback, Robinhood has experienced a significant rally in 2025. Its stock is up nearly 90% year-to-date, bolstered by a rebound in both equity and cryptocurrency markets. The company also recently posted record-high share prices, marking a sharp turnaround from earlier struggles following the cooling of the 2021 meme-stock frenzy and the collapse of crypto exchange FTX in 2022.
