Advertising platform provider The Trade Desk joins the S&P 500. Smartphone broker Robinhood comes away empty-handed again.
$TTD (-0,43 %) will be included in the S&P 500 before the start of trading next Friday, replacing the shares of the software company $ANSS (+0 %) that is about to be taken over by $SNPS (-1,16 %) is about to be taken over by This was announced by the index provider S&P Dow Jones Indices.
Shares in The Trade Desk rose by 14.68% to USD 86.50 in after-hours trading in response to the news.
Robinhood remains on the sidelines
The shares of the smartphone broker $HOOD (+2,92 %) was passed over for inclusion in the S&P 500 index for the third time in just a few weeks. At the beginning of June, Robinhood shares were not included in the index as part of a regular index review, although the company met all the criteria and many market participants had expected it to be included. At the beginning of July, Robinhood shares were also not included in the S&P 500 in an irregular index adjustment due to the takeover of Juniper Networks by Hewlett Packard Enterprise, but Datadog shares were.
Even now, there would have been many arguments in favor of Robinhood's inclusion in the S&P 500. The fintech meets the profitability and liquidity criteria for inclusion in the S&P 500 and, at USD 88 billion, has a market capitalization more than twice as high as The Trade Desk at around USD 37 billion. Robinhood is therefore also one of the largest companies not yet represented in the index. In recent months, Robinhood has recorded exceptionally strong share price momentum: since the beginning of the year, the share price has risen by 168%, while The Trade Desk has lost more than 35% in the same period. Robinhood's growing importance in the retail brokerage sector and the high level of trading activity in the share could also have been arguments in favor of Robinhood's inclusion in the index.
Although the composition of the S&P 500 is based on the market capitalization of companies in addition to formal criteria such as trading volume and profitability, the index committee has leeway when including new shares in this important index. Reasons for Robinhood's non-inclusion could be that the share has recently been very volatile and the company has been in the headlines several times due to regulatory violations and disputes with the US financial regulator FINRA.
With the inclusion of The Trade Desk in the S&P 500, a stock that has been weakening since the beginning of the year has received a tailwind, while Robinhood was once again overlooked despite its significantly higher market capitalization.