Robinhood and AppLovin have been included in the S&P 500 index, effective in late September

Three companies are about to join the most important stock index in the United States, and the "American influencer brokerage" Robinhood has finally "got its wish."

On Friday after U.S. stock trading, S&P Dow Jones Indices announced that starting September 22, Robinhood, AppLovin, and Emcor will be included in the S&P 500 benchmark index. These three companies will replace MarketAxess, Caesars, and Enphase.

Robinhood's inclusion is a milestone, as this retail trading platform, which defined the retail investment boom during the pandemic, will now be included in the portfolios of global index funds, pension plans, and retirement accounts. Robinhood's stock price surged over 6% in after-hours trading. The stock has risen 156% this year, bringing its market capitalization to approximately $90 billion.

Meanwhile, AppLovin, with a pre-inclusion market capitalization of about $165 billion, is the largest U.S. company not previously included in the S&P 500, and its stock price rose over 6% in after-hours trading.

Mobile Advertising Technology Leader Joins Blue-Chip Stocks

AppLovin is known for its mobile app marketing platform, which provides precise advertising services for mobile applications and games.

The company's second-quarter performance exceeded expectations, driving strong stock performance. Since the low in April, the stock has more than doubled.

AppLovin's inclusion reflects the rapid development of the mobile advertising technology industry and its enhanced market position.

However, AppLovin's inclusion was not without challenges. Reports indicate that in March, short-selling firm Fuzzy Panda Research suggested that the index committee prevent AppLovin from becoming a component stock.

Last December, when the committee chose Workday to join the S&P 500, AppLovin's stock price fell by 15%.

From Disruptor to Mainstream Financial Pillar

Robinhood was founded in 2013 by Vlad Tenev and Baiju Bhatt, capturing significant market share from traditional brokers with its smooth interface and zero-commission trading.

The platform has been praised for revolutionizing the elimination of commissions and making stock investing accessible through a user-friendly app, attracting a new generation of investors and reshaping how ordinary Americans participate in financial markets.

Robinhood went public in July 2021 at the peak of the retail stock frenzy during the pandemic, becoming the preferred platform for retail investors trading speculative stocks like GameStop and AMC Entertainment Wall Street Journal previously mentioned that the company's total net revenue in the second quarter increased by 45% year-on-year, and net profit more than doubled, both exceeding Wall Street expectations.

Strong performance in cryptocurrency trading has become an important driver of revenue growth.

The growth in cryptocurrency and options trading helped the company achieve a 65% year-on-year increase in trading revenue in the second quarter. In July alone, its cryptocurrency trading volume more than doubled year-on-year.

Additionally, the company has expanded its business lines into areas such as credit cards and wealth management, indicating that its business model is becoming increasingly diversified.

Financial Technology Sector Gains New Recognition

Since the beginning of this year, several technology and fintech companies have joined the S&P 500.

In May, cryptocurrency exchange Coinbase became the first digital asset company to join the S&P 500, adding new legitimacy to the fintech industry.

Subsequently, in July, SaaS company Datadog and in August, brokerage Interactive Brokers were consecutively included in the S&P 500 constituents, reflecting the industry's increasingly important position in the U.S. economy.

Notably, the market had previously expected that Bitcoin holding giant MicroStrategy might be included in this quarter's adjustment, but it ultimately did not come to fruition. The company's stock price fell about 3% in after-hours trading.

According to Bloomberg data, MicroStrategy has a market capitalization of $93 billion, far exceeding the minimum threshold of $22.7 billion, but analysts believe that the company's characteristics as a Bitcoin treasury rather than an operating business may be the reason for its exclusion