Robinhood Markets included in the S&P 500 index

Due to the meme stock frenzy, the retail brokerage firm Robinhood Markets has become one of the newest components of the S&P 500 index. S&P Dow Jones Indices announced last Friday that the company, along with AppLovin and Emcor Group, will be added to the benchmark index on September 22. This is a milestone for the trading and investment company; Robinhood's business has expanded beyond YOLO stock trading and crypto bets into other areas such as credit cards and wealth management. Joining the S&P 500 index brings prestige to a company and typically boosts its stock price. Funds tracking this index must buy stocks to rebalance their portfolios. A company must have a market value of at least $22.7 billion to be eligible for inclusion. There are also other criteria that are ultimately decided by a committee on which stocks can be selected. Robinhood's market value is approximately $90 billion.