Robinhood, AppLovin Stocks Sink as Firms Not Included in S&P 500
Robinhood Markets and AppLovin weren't added to the S&P 500 index as some had speculated, sending their shares lower Monday.
Robinhood Markets shares hit an all-time high Friday as several analysts suggested it would be included in the prestigious index.
A short seller reportedly lobbied the producer of the index to keep AppLovin out.Shares of Robinhood Markets (HOOD) and AppLovin (APP) fell about 7% and 6%, respectively, Monday as neither was added to the S&P 500 as some had anticipated.
S&P Global, which produces the index, made no changes to the prestigious index in its June rebalancing.
Bloomberg said that analysts, including those at Bank of America and Barclays, had speculated that Robinhood would be added, sending the online trading platform's shares soaring to an all-time high Friday.
Some intrigue was involved in the AppLovin story. CNBC reported in March that short seller Fuzzy Panda Research urged S&P Global to keep the mobile marketing platform out of the index. The network cited a letter from Fuzzy Panda calling AppLovin a "nexus of a house of cards," and claimed it violated the app store policies of Alphabet's (GOOGL) Google and Apple (AAPL).
Inclusion in the S&P 500 can be advantageous to stocks, because it exposes them to a wider group of investors who could become aware of those companies through an index. In addition, they can be put into various index funds that track S&P 500 stocks.
Despite today's losses, shares of both Robinhood Markets and AppLovin are comfortably higher year-to-date.
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