On September 8, two of the vigilance market took their legitimate place in the most monitored standard in the world. RobinHood Markets Nasdak: Hood And Applovin Nasdak: the application will Join S&P 500. The two companies were waiting for a long time for this; Many people believed that the S&P 500 left Hood and the application from the inclusion earlier this year.
This feeling was logical. In 2025, Robinhood and Applovin entered the market with a market of $ 33 billion and $ 109 billion, respectively. Almost 25 % of the shares in the S&P 500 index started 2025 with the market’s face less than these numbers. Thus, it seemed inevitable that the two companies will eventually become the S&P 500 ingredients.
As it becomes clear from the prices of these shares on September 8, the good things for those who are waiting. Robinhood shares closed approximately 16 % in the reaction to the news, while Applovin shares increased by approximately 12 %. Below, we will explain why this news caused such a positive reaction from the markets and what it means to move forward.
The S&P checks the validity of the cover and the application after the profitability of the GAAP
Robinhood markets today
RobinHood Markets
As of 04:00 pm
- 52 weeks
- 19.54 dollars
▼
123.44 dollars
- P/E ratio.
- 59.62
- The target price
- 101.88 dollars
The first main meals of Hood and App’s S& P 500 is to check the health it provides about their basic work. Before making the price of September 8, it was Hood and App It increased by about 496 % and 520 % Within 52 weeks, respectively. But high stock prices are not always supported by strong basics.
These amazing gains over a short period can give the impression that speculation is the main engine to mobilize stocks. Based on the last profit reports of both companies, speculation is definitely the main reason for Hood and App’s’ Impressive returns.
This main criterion is highlighted in this index: S&P says that Safi Safi GAAP for the share in the past 12 months It should be positive. This ensures that the company is constantly profit by standard accounting rules, not only after the amendments.
The net net income of Robinhood has been positive in the past seven quarters.
Applovin today
As of 04:00 pm
- 52 weeks
- 87.12 dollars
▼
576.01 dollars
- P/E ratio.
- 80.56
- The target price
- 482.86 dollars
Applovin has maintained this trend in each of the past nine quarters. These successive circles provide strong evidence that Hood and App can continue to achieve GAAP profitability in the near future, supporting their ability to stay in S&P 500 in the long run.
The consistent GAAP profit for the hood and the app with another share that many believe is worth a place in the S&P 500 strategy Nasdak: mstr. As of September 8, stock shares are trading about $ 93 billion. This is easily within the requirements of the maximum market, $ 22.7 billion.
In addition, net income in GAAP of strategy during the past four quarters is very positive by about $ 4.7 billion. However, over the past eight individual seasons, the number has only been positive on two occasions. This contrast makes the S&P less inclined to a strategic addition to the index compared to companies like Robinhood and Applovin.
Increased money purchases shares
Many shares have a large percentage of their shares owned by financial companies such as Blackrock NYSE: BLK And Vanguard. These companies manage some of the largest investment funds in the world and investment funds. For example, Ishares Core S & P 500 ETF from Blackrock NYSEARCA: IVVS&P follows 500, and contains approximately 667 billion dollars in net assets.
When the new stocks acquire the S&P 500 inserts, the Blackrock must buy its shares so that IVV is properly tracked in the future. Thus, he will see the cover and application A large purchase of companies like Blackrock and VanguardWho collectively control trillions of assets. Expecting this is the main reason for the height of the shares on September 8.
Many active managers trying to overcome the S&P 500 begin using their shares as a rule. They may then set their holdings slightly, overweight in some stocks and exclude others in an attempt to excel the market.
Because of this, many of these investors are likely to start keeping the cover and application near the indicator’s weight. This can add the gradual demand to their shares at the top of buying negative funds.
S & P 500 include: a major victory for Hood and App, but not a golden ticket
In general, the markets may have already been priced in a large part of the near -hid and application due to the S&P 500 insert.
However, the inclusion enhances the two companies between Crop Regarding American stocks, additional credibility lends to their business.
However, the long -term track of these shares eventually continues to rely on its ability to spread impressive profits and expand their business.
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