After the company announced an early public offer in New York City on July 29, 2021, they waited in line with T-shirts at a pop-up kiosk from online brokerage company Robin Hood along Wall Street.
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Robinhood’s shares were sold on Monday as the online brokerage was snuck in the latest quarterly rebalancing of the S&P 500 after months of speculation that it could win the coveted spot on the benchmarks.
Robinhood shares fell more than 3% in pre-market trading. The stock rose 3.3% on Friday, and after raising profits last week to more than 13%, the S&P Dow Jones Index said the S&P 500 remains unchanged after the bell.
Last week, Bank of America called it the top candidate to join the S&P 500 during a major remodel in June. The S&P 500 rebalance, which normally takes place in the quarter on the third Friday of last month, is an impactful event as it could typically supply billions of dollars in trading and passive funds to snap stocks. Companies added to the index can generally expect such funds to buy large quantities of stock in the coming weeks.
Crypto Exchange Coinbase was the latest beneficiary of such inclusion. After its announcement last month, the stock price surged 24% in the next trading session.
Still, Robin Hood has made a big comeback so far this year, with stocks doubling their prices. The online brokerage stock hit a new record high last week amid both stock and crypto rebounds. The company fell out of favor after GameStop Trading Mania surged in 2021, and the collapse of FTX caused a sale on digital assets.
