US EditionRobinhood Drops on S&P Snub—Is a Bigger Pullback Coming?
- Shares of Robinhood Markets Inc. Declined significantly on Monday following the company's exclusion from the latest quarterly S&P 500 index rebalance.
- This decision brought an end to weeks of anticipation and speculation, despite Robinhood meeting important requirements such as consistent earnings and having a market value above $66 billion.
- Robinhood’s shares had rallied over 13% last week and doubled in price this year amid optimism for inclusion, while S&P Dow Jones Indices confirmed no changes would be made to the index.
- Shares of Robinhood Markets declined sharply during intraday trading, falling to $69.78 amid a wave of profit-taking and emphasizing the vulnerabilities associated with index-driven trading strategies when results contradict market expectations.
- Analysts view the S&P 500 exclusion as a temporary setback with potential future inclusion possible, though some suggest more risk-averse investors may await a larger pullback before buying.
17 Articles
17 Articles
Robinhood Stock Drops 5% After S&P 500 Snub
Robinhood shares fell sharply on Monday, tumbling more than 5% after the online brokerage was left out of the S&P 500 in the index’s latest quarterly rebalance. The decision ended weeks of speculation that Robinhood might secure a coveted spot in the benchmark index. The stock had rallied 3.3% on Friday and gained more than 13% last week amid growing investor optimism ahead of the announcement. But after S&P Dow Jones Indices revealed after the …
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