From Nasdaq
June 10, 2025 10:43 AM:

Robinhood Markets, symbol HOOD, was not added to the S&P 500 list, causing its stock to drop 8% during trading before closing 2% lower. Despite this, shares have risen 97% this year due to product expansion and positive developments in cryptocurrency.

Robinhood’s market cap of $66 billion exceeds the S&P 500 eligibility threshold of $20.5 billion, but other factors like governance and liquidity are considered. Inclusion in the S&P 500 can drive demand from index funds, boosting stock price and credibility. Competitors like Coinbase Global and Interactive Brokers were also considered for inclusion.

HOOD shares trade at a high premium to the industry with a forward P/E of 55.04X compared to the industry average of 13.80X. Analysts project 11.9% and 20.5% earnings growth for 2025 and 2026, respectively. The Zacks Rank for Robinhood is currently #3 (Hold).

Interactive Brokers Group, Inc. (IBKR) and Coinbase Global, Inc. (COIN) provide free stock analysis reports. Robinhood Markets, Inc. (HOOD) missed out on joining the S&P 500, impacting investor expectations.

Read more at Nasdaq: HOOD Misses Out on Joining the S&P 500: What This Means for Investors