Robinhood Stock Tanks After S&P 500 Snub - Strategy Shares Follow Downward Spiral

Robinhood gets the cold shoulder from Wall Street's most exclusive club.

The trading platform's stock plummeted alongside Strategy Shares after failing to secure coveted S&P 500 inclusion—proof that even fintech darlings aren't immune to old-school institutional rejection.

Volume exploded as retail traders scrambled to exit positions, creating a classic 'sell the news' event that would make any traditional finance suit smirk. Because nothing says market maturity like watching disruptive platforms beg for establishment validation.

The rejection highlights the lingering gap between mainstream finance adoption and crypto-native ambition—a reminder that sometimes the most innovative technologies still play by old rules when it comes to market recognition.

TLDR

• Robinhood shares fell by 1.26% on Monday and dropped another 0.65% in after-hours trading.
• Strategy shares decreased by 4.17% on Monday, followed by a 0.09% decline in after-hours trading.
• Interactive Brokers secured a spot in the S&P 500, replacing Walgreens Boots Alliance.
• Robinhood’s impressive 190% rally in 2025 did not result in its inclusion in the S&P 500.
• Strategy’s recent Bitcoin purchase added 3,081 BTC to its holdings, totaling 632,457 BTC.

Shares of Robinhood Markets Inc. (NASDAQ: HOOD) and Bitcoin treasury firm Strategy Inc. (NASDAQ: MSTR) dropped after missing out on inclusion in the S&P 500 index. The news, announced on Aug. 25, revealed that Interactive Brokers Group Inc. (NASDAQ: IBKR) would replace Walgreens Boots Alliance Inc. (NASDAQ: WBA) in the index. Investors had long speculated about Robinhood’s potential addition to the S&P 500, especially after a near 190% rally in 2025.

Robinhood Left Out of S&P 500 Again

Despite strong market performance in 2025, Robinhood failed to secure a spot in the prestigious S&P 500 index. Shares of Robinhood dropped 1.26% on Monday, reaching $107.40, and continued to slide another 0.65% in after-hours trading. The company had become a prime candidate for inclusion after its impressive stock rally fueled by retail investor enthusiasm.

Wall Street analysts had predicted Robinhood’s inclusion for months, given its soaring stock price. However, the S&P Dow Jones Indices passed on Robinhood once again, disappointing many investors. Robinhood’s stock had hit record highs this year, but the latest decision triggered a modest sell-off. The company now faces the challenge of maintaining investor interest amid growing market volatility.

Strategy Stumbles Amid Bitcoin Drop

Strategy Inc., formerly known as MicroStrategy, also missed out on inclusion in the S&P 500 index. Its shares fell 4.17% to $341 on Monday, followed by a slight 0.09% drop in after-hours trading. Strategy had been a strong candidate after its market capitalization grew in line with Bitcoin’s rise to new all-time highs.

Strategy has acquired 3,081 BTC for ~$356.9 million at ~$115,829 per bitcoin and has achieved BTC Yield of 25.4% YTD 2025. As of 8/24/2025, we hodl 632,457 $BTC acquired for ~$46.50 billion at ~$73,527 per bitcoin. $MSTR $STRC $STRK $STRF $STRDhttps://t.co/Amqo0Rzlsi

— Strategy (@Strategy) August 25, 2025

In addition to missing the S&P 500 cut, Bitcoin also dropped below the $110,000 mark, falling to as low as $108,000. Despite the drop, analysts expect the digital currency to perform well in the fourth quarter of 2025. Strategy had disclosed a recent $356.9 million Bitcoin purchase, adding 3,081 BTC to its holdings at an average price of $115,829 per coin.

Michael Saylor’s Strategy now holds 632,457 BTC worth $46.5 billion. Despite recent setbacks, the company has raised its 2025 performance targets. Strategy is now aiming for a 30% Bitcoin yield, up from the previous goal of 25%, and expects BTC gains to reach $20 billion.