Strengths 1. Visibility & Cred

Strengths

1. Visibility & Credibility

Being in the S&P 500 is a signal that a company has achieved a level of size, profitability, and stability. That tends to reduce perceived risk, attract institutional interest, and possibly improve terms in funding or partnerships.

2. Greater liquidity and investor base

More mutual funds, ETFs, pension funds etc. will hold the stocks; trading volumes and liquidity typically improve, which is positive for investors.

3. Potential re-rating upwards

Because S&P inclusion can reduce the cost of capital, the stock could command a higher multiple (P/E etc.), if earnings are stable. Also, markets often “price in” the inclusion with some premium.

4. Short-term momentum

The announcement often leads to short-term gains as index trackers buy, and some speculators enter. If you’re a trader, there might be profit in riding that wave.

Robinhood 🚀 AppLovin to Join SP500! Buy Now or Sell the News?

AppLovin and Robinhood will join the S&P 500 index. Robinhood has been a favorite among retail investors who have bid up shares of meme stocks such as AMC Entertainment and GameStop. Robinhood already rises over 200% this year! AppLovin gained 278% in 2023 and over 700% in 2024. As of Friday’s close, the stock had gained only 68% so far in 2025. AppLovin’s software brings targeted ads to mobile apps and games. ----- 1. Robinhood vs. AppLovin — which business model has more staying power inside the S&P 500? 2. Do you see index inclusion as a long-term signal, or “sell the news” event?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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