Robinhood’s stock soared by 15% on Monday, setting financial circles abuzz as the company celebrated its inclusion in the prestigious S&P 500 index. This milestone, effective with the index’s rebalancing on September 22, was announced after markets closed last Friday, capping off a remarkable year for Robinhood. The trading platform’s stock price has nearly tripled in 2025 alone, and its new status as an S&P 500 constituent reflects the company’s growing influence in the financial sector.
Robinhood’s ascent to the S&P 500 is noteworthy given that it was previously one of the three largest eligible companies not included in the index. The S&P 500, a key benchmark for U.S. equities, is closely followed by investors worldwide, and inclusion often signals a company’s solidity and potential for sustainable growth. For Robinhood, it’s not just a badge of honor but a catalyst that could drive further investment.
Robinhood’s Meteoric Rise
Robinhood’s journey to this point is nothing short of impressive. Founded in 2013, the company has revolutionized how retail investors access financial markets, offering commission-free trading and a user-friendly platform that appeals to both novice and seasoned investors. This year, Robinhood has capitalized on a bullish market environment, with its stock experiencing a meteoric rise fueled by increased retail trading activity and strategic business expansions.
The S&P 500 inclusion is expected to boost Robinhood’s visibility and credibility. As index funds and ETFs that track the S&P 500 adjust their portfolios, increased buying of Robinhood shares could further elevate its stock price. This heightened exposure may also attract a new wave of institutional investors who typically adhere to S&P 500 listings as part of their investment criteria.
Strategy’s Snub and Market Reaction
While Robinhood basks in its success, Strategy Inc. (MSTR) faced a different reality. Despite meeting the financial requirements for S&P 500 inclusion for the first time, the bitcoin-focused company was passed over. Strategy reported a staggering $14 billion in operating income and $10 billion in net income for the second quarter of 2025, primarily driven by a sharp rise in bitcoin prices.
However, the very source of Strategy’s impressive earnings—bitcoin—may have been its Achilles’ heel. The selection committee likely considered the volatile nature of cryptocurrencies, aware that bitcoin’s value can fluctuate dramatically. This potential instability could have been a deterrent, despite Strategy’s strong financial performance.
Strategy’s shares dipped by 1.5% in late morning trading on Monday as investors reacted to the news. Appearing on CNBC, Strategy CEO Michael Saylor expressed a pragmatic view, acknowledging that immediate inclusion wasn’t anticipated. “I don’t think we expected to be selected on our first quarter of eligibility,” he stated. “We figured it’ll happen at some time.”
Analysts Weigh In
Analysts have offered their take on the committee’s decision, with Benchmark analyst Mark Palmer suggesting that Strategy doesn’t need S&P validation to prove its worth. “The market scoreboard has already provided it in emphatic fashion,” Palmer noted, highlighting Strategy’s robust financials and market position.
TD Cowen analyst Lance Vitanca echoed this sentiment, remarking that while S&P 500 inclusion could have been a positive catalyst, it was never central to their investment thesis. Vitanca also speculated that the committee might have broader philosophical or economic concerns about including a company so heavily tied to bitcoin, suggesting that these concerns could diminish over time as the crypto market matures.
Looking Ahead
As Robinhood steps into this new chapter as part of the S&P 500, the company is poised for continued growth and innovation. Its inclusion not only underscores its market strength but also places it in a league with some of the most successful companies in the world. For investors, Robinhood’s S&P 500 status could translate into increased stability and a more diversified shareholder base.
Meanwhile, Strategy remains focused on its core mission, undeterred by the S&P 500 snub. With bitcoin and other cryptocurrencies gaining traction as legitimate investment assets, Strategy’s future prospects remain promising. As the crypto landscape continues to evolve, the company may yet find itself among the S&P 500 ranks in due course.
In the ever-changing world of finance, both Robinhood and Strategy are emblematic of the dynamic forces reshaping markets today. While their paths diverged with the recent S&P 500 announcement, each company continues to forge its own way, navigating the complexities of modern financial ecosystems.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
