Robinhood Gets Snubbed by S&P 500—Shares Tank 5% as Wall Street Shrugs

Another day, another rejection—Robinhood's bid for blue-chip status just got the cold shoulder. The trading app's stock nosedived 5% after failing to crack the latest S&P 500 rebalance. Guess meme stocks and crypto hype don't impress the index gatekeepers.

Wall Street's old guard strikes again. While HOOD bulls touted its 'democratized finance' narrative, the index committee clearly wasn't buying what they were selling. Pro tip: maybe try turning a profit first?

Funny how getting excluded from a benchmark designed for profitable companies hurts when you're... not profitable. The irony writes itself—but Robinhood's shareholders aren't laughing.

Robinhood was a major contender to join the S&P 500 according to BoA

The quarterly rebalance, which normally takes place on the third Friday of the final month in each quarter, often drives billions of dollars of trading. Passive funds tied to the index typically buy large volumes of any company added in the days that follow.

A recent winner from this process was crypto exchange Coinbase, whose shares leaped 24% in the session after its inclusion was revealed last month.

Still, Robinhood has enjoyed a strong comeback this year. Its share price has roughly doubled, and it hit a fresh record high last week amid renewed strength in both stocks and cryptocurrencies. The firm had lost favor after the GameStop trading frenzy of 2021 faded and the collapse of FTX sparked a drop in digital assets.

Meanwhile, Robinhood Markets, Inc. completed its acquisition of Bitstamp on May 2, 2025, finalizing a deal first announced in June 2024. The $200 million transaction was paid entirely in cash.

Bitstamp, based in Luxembourg, is one of the oldest and most respected cryptocurrency exchanges, with a broad international reach and a loyal client base. Robinhood says the purchase marks a key step in its plan to broaden its presence in the global crypto market.

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