Shares in trading platform Robinhood Markets and Bitcoin treasury firm Strategy fell in after-hours trading on Monday after missing out on being included in the S&P 500, amid a broader market dip.
S&P Dow Jones Indices said late Monday that brokerage Interactive Brokers Group would join the index tracking the 500 largest US companies at market open on Thursday and replace the pharmacy chain Walgreens Boots Alliance.
Wall Street has long been expecting Robinhood to join the S&P 500, and MicroStrategy, trading as Strategy, had recently become eligible for inclusion as its market cap has been boosted by the rising value of its Bitcoin (BTC) holdings.
Inclusion on the S&P 500 is typically seen as a boon for a company, as its shares would be scooped up by passive investors and other funds aiming to track the index.
Robinhood again snubbed from S&P 500
Shares in the crypto and stock trading platform Robinhood (HOOD) ended after-hours trading down 0.5% at $107.40 after closing trading on Monday at a 1.26% loss.
In comparison, Interactive Brokers (IBKR) saw a 3.9% lift in extended trading to $65.21 on the announcement of its inclusion after gaining less than 0.6% throughout the trading day, while the S&P 500 ended trading 0.4% down.
Robinhood shares had also dropped in early June after S&P Dow Jones Indices announced there would be no changes to the S&P 500 in its quarterly rebalancing.
The company’s stock has, however, gained nearly 190% this year and has continued to break price records, seeing a lift from renewed retail investor enthusiasm.
Strategy also down on S&P miss and Bitcoin drop
Shares in the software firm Strategy (MSTR) also dropped on Monday, ending the day’s session down 4.17% and a further 0.6% in after-hours trading to $341.
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The company’s stock fell alongside Bitcoin, which was down 2% in the past day after briefly slipping below $110,000.
S&P 500 inclusion is not just about stock price
A company’s inclusion on the S&P 500 is the decision of a committee who are guided by a range of criteria a company needs to meet before it is added.
A company needs to have a market capitalization of at least $22.7 billion, be based in the US and listed on the New York Stock Exchange, the Nasdaq or Cboe.
Its shares must also meet minimum requirements for market liquidity and volume.
Jack Dorsey’s financial services company, Block, Inc., was the latest crypto-tied company to make the index and joined the S&P 500 on July 23.
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