Shares of trading platform Robinhood Markets and Strategy fell in trading on Monday after being excluded from the S&P 500 index. But Interactive Brokers Group was able to join the index tracking 500 of the largest U.S. companies, replacing drugstore chain Walgreens Boots Alliance.
Robinhood (HOOD) shares closed down 0,5% at $107,40 after closing Monday with a loss of 1,26%.
On the same day, shares of software developer Strategy (MSTR) also fell in price, ending the trading session down 4,17% and falling another 0,6% in after-hours trading to $341.
By comparison, Interactive Brokers (IBKR) shares rose 3,9% in extended trading to $65,21 after the index addition was announced, though they were up less than 0,6% for the full day. The S&P 500 ended the day down 0,4%.
Inclusion in the S&P 500 index is generally seen as a positive for a company, as its shares will be bought by passive investors and other funds that seek to track the index.
A company’s inclusion in the S&P 500 index is a decision made by a committee that uses a number of criteria. The company must have a market capitalization of at least $22,7 billion, be located in the United States, and be listed on the NYSE, Nasdaq, or Cboe. Its shares must also meet minimum market liquidity and trading volume requirements.
The latest crypto company to make it into the S&P 500 is Jack Dorsey’s Block.