Mobile advertising powerhouse AppLovin and trading platform Robinhood are officially joining the S&P 500 index on September 22, marking a major milestone for both companies after previous snubs. The announcement sent both stocks surging in after-hours trading as institutional investors prepare for mandatory buying.
AppLovin and Robinhood just crossed the finish line in one of the most watched S&P 500 races of 2025. Both stocks jumped in extended trading Friday after S&P Global announced the companies will join the blue-chip index before markets open September 22, according to the official statement.
The mobile advertising giant will replace MarketAxess Holdings, while the commission-free trading app bumps Caesars Entertainment from the coveted 500-company roster. The moves represent validation for two fintech disruptors that have faced skepticism from traditional investors.
AppLovin's path to the S&P 500 wasn't smooth. Short-seller Fuzzy Panda Research publicly urged the index committee to exclude the company in March, raising questions about its business model and growth sustainability. The campaign highlighted ongoing tensions between growth-focused tech companies and value-oriented institutional investors.
Robinhood faced its own rejection saga. The company's shares slipped 2% in June when it was passed over during the quarterly index rebalancing, despite meeting many of the committee's traditional criteria. The snub sparked debate about whether newer fintech companies face higher barriers to inclusion.
Both companies have transformed their respective industries through aggressive innovation. AppLovin built a mobile advertising empire by acquiring smaller gaming studios and deploying AI-powered ad targeting that generates billions in revenue for app developers. Meanwhile, Robinhood democratized stock trading by eliminating commissions and introducing crypto trading to millions of younger investors.
The S&P 500 inclusion triggers massive institutional buying as passive index funds must purchase shares to match their benchmarks. An estimated $15 trillion in assets track the index, meaning both companies will see significant inflows from pension funds, ETFs, and institutional portfolios over the coming weeks.
