1. AppLovin (APP) joins the S&P 500 on September 22. 2. APP replaces MarketAxess Holdings (MKTX) in the rebalancing. 3. Investors speculated about new S&P 500 companies before the announcement. 4. Robinhood and APP shares fell on the announcement day. 5. Rebalancing occurs quarterly with other notable company changes.
Being added to the S&P 500 typically boosts a stock's visibility and demand. Previous additions often lead to increased investment inflows.
The addition to the S&P 500 raises APP's profile with index funds and institutional investors. This event is historically associated with positive price movements.
Immediate effects of joining S&P 500 are likely to manifest quickly. Historical instances showcase rapid price increases following index additions.