Shares of trading platform Robinhood Markets and Bitcoin-focused firm MicroStrategy (trading as Strategy) slipped in after-hours trading on Monday, following a broader market decline, after both companies were excluded from the S&P 500.
S&P Dow Jones Indices announced late Monday that Interactive Brokers Group would be added to the index tracking the 500 largest U.S. companies at the market open on Thursday, replacing pharmacy chain Walgreens Boots Alliance.
Robinhood had long been anticipated to join the S&P 500, while MicroStrategy recently became eligible due to a boost in its market capitalization from rising Bitcoin holdings.
Being included in the S&P 500 is generally viewed as positive for a company, as it often leads to increased buying by passive investors and funds that track the index.
Robinhood Misses Out on S&P 500 Once More
Shares of crypto and stock trading platform Robinhood (HOOD) fell 0.5% in after-hours trading to $107.40, following a 1.26% decline during Monday’s regular session.
By contrast, Interactive Brokers (IBKR) jumped 3.9% in extended trading to $65.21 after the announcement of its S&P 500 inclusion, having risen less than 0.6% during the regular session. The S&P 500 closed the day down 0.4%.
Robinhood shares also fell in early June when S&P Dow Jones Indices confirmed no changes to the S&P 500 during its quarterly rebalancing.
Despite this, the stock has surged nearly 190% so far this year, continuing to hit record highs, buoyed by renewed enthusiasm from retail investors.
Strategy Shares Fall Amid S&P Snub and Bitcoin Decline
Shares of software firm MicroStrategy (MSTR) fell on Monday, closing the session down 4.17% and slipping an additional 0.6% in after-hours trading to $341.
The decline came as Bitcoin dropped 2% over the past day, briefly dipping below $110,000.
S&P 500 Inclusion Means More Than Just Stock Price
A company’s entry into the S&P 500 is determined by a committee that considers multiple criteria.
To qualify, a company must be U.S.-based, listed on the NYSE, Nasdaq, or Cboe, and have a market capitalization of at least $22.7 billion. Its shares must also meet minimum liquidity and trading volume requirements.
The most recent crypto-related company to join the index was Jack Dorsey’s financial services firm, Block, Inc., which was added on July 23.
Being Added to the S&P 500 Isn’t Only About Stock Price
A company’s entry into the S&P 500 is determined by a committee that considers multiple criteria.
To qualify, a company must be U.S.-based, listed on the NYSE, Nasdaq, or Cboe, and have a market capitalization of at least $22.7 billion. Its shares must also meet minimum liquidity and trading volume requirements.
The most recent crypto-related company to join the index was Jack Dorsey’s financial services firm, Block, Inc., which was added on July 23.
