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Robinhood, AppLovin Could Be Added to the S&P 500 Soon. What Other Stocks Are in the Running. - Barron's

1. AppLovin is a potential addition to the S&P 500 index. 2. Inclusion can significantly boost stock prices due to index fund buying. 3. AppLovin has a market value of $135 billion. 4. Changes to the S&P 500 announced June 23 may affect APP stock. 5. Companies must meet profitability and valuation criteria for inclusion.

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FAQ

Why Bullish?

Inclusion in the S&P 500 often leads to price increases. Historical examples include DoorDash's price surge following its index addition.

How important is it?

AppLovin's potential inclusion is highly relevant to its valuation and market sentiment.

Why Short Term?

Impact expected soon after the June 23 announcement. Recent additions have seen immediate trading reactions.

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