(Reuters) -Shares of Robinhood Markets dipped 5% in premarket trading on Monday, after S&P Dow Jones Indices made no changes to the S&P 500 membership following recent speculation that the online brokerage would be added to the index.
S&P Dow Jones Indices announced late on Friday that it will not be making any changes to the components of the benchmark S&P 500 as part of quarterly rebalancing.
Robinhood stock rallied in recent weeks, touching its highest level since 2021 market debut on Friday, as investors priced in a possible inclusion in the index.
Bank of America analysts earlier this month touted the company as the “prime candidate” to join the S&P 500.
Robinhood’s shares were down 5% at $71.2 before the bell, while marketing platform AppLovin, which also rallied last week on bets of inclusion, dropped 5% to $397.
To be included on the index, a company has to be U.S. domiciled, listed on a prominent U.S. exchange and have a market capitalization of $20.5 billion or higher.
Robinhood had a market valuation of $66.1 billion as of Friday’s close, with shares more than doubling in value this year and trading well above its IPO price of $38 apiece.
Crypto-exchange operator Coinbase Global was the latest addition to the S&P 500 last month, making it the first digital asset player to be included in the index.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Shreya Biswas)
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