Robinhood Markets (HOOD) will be added to the S&P 500 GSPC (^GSPC) at the start of the trading day on Monday, Sept. 22, along with Applovin (APP) and EMCOR’s (EME). The stock will be replacing MarketAxess Holdings (MKTX) on the index.
Yahoo Finance Head of News Myles Udland, Senior Markets Reporter Ines Ferré, and Blue Chip Daily Trend Report chief technical strategist Larry Tentarelli discuss Robinhood’s S&P 500 inclusion and how it contributes to legitimizing retail trade and meme stocks.
To watch more expert insights and analysis on the latest market action, check out more Opening Bid.
00:03 Speaker A
All right, let’s turn now to our stock of the day and that is Robin Hood. The stock trading higher early in the session, up 13% after it was announced late Friday, the company would be added to the S&P 500. The company will join the index at the opening of trading on Monday, September 22nd. It will replace Market Axcess Holdings. App Lovin and MCore are also set to join the S&P 500. Those stocks trading higher in the early going as well. But let’s stay with
00:36 Speaker A
Robin Hood, still with me. We have Larry Tanterelli, Ali Canal and Annez Pere. Uh Annez, I want to turn to you uh on the question of Robin Hood and really what this stock means for um kind of this point in the rally. We’ve seen the retail trade, the meme trade as it were, come and go a few times. Um most recently, Opendoor, a few of those names over the summer. I know you’ve covered retail traders, the meme trade very closely over the last few years. Um it it sort of feels like a crowning moment in a way for the entire movement with Robin Hood Coinbase as we
01:13 Speaker A
had it earlier this year added to the S&P. Uh and now Robin Hood joins as really like this is a real thing. This is not just a joke, a gag. This is a major part of the market that, um, we certainly all collectively watching markets, discussing it, uh, take a lot more seriously as part of the daily story and and I think the longer-term story as well.
01:46 Annez
Most certainly and some analysis I’ve seen is that Robin Hood is going has gone from a YOLO app to a Main Street app, mainstream app. So, um it it’s certainly is a crowning moment for Robin Hood, uh, as far as also it’s a lot of its revenue coming from crypto trading. This is also a validation, uh, an institutional sort of validation when it comes to crypto. Uh I also saw some interesting analysis
02:22 Annez
on the fact that strategy was not added. So strategy was snubbed from the S&P 500. Robin Hood taking the crown here. So this kind of also gives you an indication that yes, Wall Street is very much embracing uh crypto, but not to the extreme of sort of a risk, the high risk, uh sort of position that uh strategy would come with. So it’s an interesting nuance there as well. But look, this is a stock that has a had a remarkable run, 190% up year to date. Wall Street is increasingly
02:52 Annez
bullish on this stock, not just because of uh crypto but also because it the the company is also has been expanding or really making a push to expand beyond, of course, crypto trading and diversification, tokenization that they’re getting into. Wall Street is very bullish on that. The fact that they have been also expanding into uh the European Union as well. So, I remember when this stock was in November of 2023 was trading at around $8 a share and Wall Street was talking
03:24 Annez
about Robin Hood as being a potential target. It has had a remarkable run since then.
03:32 Speaker A
It went from what? 60 to 8 something like that between 2021, 2023. I remember, it’s uh, it is remarkable to see that run um just in the in the per share price. Larry, I want to get your thoughts on um Robin Hood but really two different parts of this. One is is how you’re viewing the retail trader, that participation at this point in the market. It’s been a few a few year story. Um and then also how you think about crypto uh within the context of the modern market where we discussed gold earlier in the program. It really seems to be finding a way, crypto is, finding
04:09 Speaker A
a way into, um, you know, portfolios of all sizes and how that bid shapes flows, uh, certainly matters these days.
04:18 Larry
Sure. So, Robin Hood, very interesting points that were made before. So, Robin Hood, over the past 12 months, they’ve earned $1.8 billion. So they’re they’re a real company. They do represent, I think the retail trader. And and as was said before, Robin Hood used to be considered a meme stock, but they’re they’re a serious player in the financial Services industry. And I think that although the retail trader, uh, may have been at the forefront for Robin Hood, I think that there’s a lot of higher end, uh, traders that have also moved into it and investors. Robin
04:54 Larry
Hood offers a lot of benefits. They’ve got 24/7 trading in a lot of stocks. I think they’ve got over 30 coins that they make available on their website. So as far as validation for the retail trader, I think Robin Hood is a big win. It they’re a solid company, they’ve got strong earnings growth, they’ve got strong revenue growth. And the chart’s very strong. I mean, we can see it just consolidated off of new all-time highs. It reclaimed the 50-day moving average today. and and it’s a very
05:27 Larry
strong leader in financial services. I’m bullish on the stock. We’ve had a position for a few months now, but I think it really does validate that retail trader in the market.
