Robinhood and Strategy Miss Out on S&P 500 Inclusion

Shares of Robinhood Markets and Strategy fell Monday after-hours as both companies were excluded from the S&P 500 index, which will instead include Interactive Brokers Group. S&P Dow Jones Indices announced that Interactive Brokers will replace Walgreens Boots Alliance in the index tracking the 500 largest U.S. companies, effective Thursday at market open.

Investors had long anticipated Robinhood's inclusion, while Strategy recently became eligible due to a market cap increase driven by its Bitcoin holdings. Inclusion in a benchmark index like the S&P 500 is typically seen as positive, as passive funds and ETFs tracking the index create additional demand for the stock.

In after-hours trading, Robinhood shares fell 0.5% to $107.40, while Interactive Brokers rose 3.9% to $65.21. The S&P 500 ended the trading day down 0.4%.