Saylor’s Strategy Misses Out as S&P 500 Adds Robinhood, AppLovin, and Emcor

Business intelligence firm Strategy, headed by Michael Saylor, was not included in the latest S&P 500 index rebalancing, surprising many investors. The announcement caused the company’s stock (MSTR) to dip nearly 3% in after-hours trading, wiping out the gains from the prior session.

The stock’s decline underscored disappointment over the missed opportunity. Being added to the index would have increased its exposure to both retail participants and institutional funds. This broader visibility could have provided upward momentum for MSTR.

Robinhood (HOOD) and AppLovin (APP) Rally on Inclusion

S&P Global added AppLovin, Robinhood Markets, and Emcor Group to the index in the recent update. The news prompted a positive reaction for these companies, while Strategy’s absence weighed on its market performance.

Robinhood’s stock (HOOD) jumped in after-hours trading, climbing from $101.25 to $107.33, a gain of over 6%. AppLovin (APP) also saw a noticeable increase, reflecting investor demand linked to index inclusion.

Notably, these price moves came ahead of the formal adjustment, which is set to take effect before markets open on September 22. Index-tracking funds will then rebalance their holdings, boosting exposure for the newly added companies.

Expert View on Index Committee’s Decision

Strategy has long been viewed as a potential candidate due to its market size and liquidity. The company holds the largest corporate BTC reserve, totaling billions, and recently avoided a class action lawsuit regarding its crypto accounting.

Still, analysts noted that the decision was not entirely unexpected. Jeff Park, CIO at ProCap BTC and former Bitwise executive, explained that S&P’s committee weighs broader market and structural factors. It does not base its decisions solely on company-specific developments.

Park added that investors often focus on internal moves, such as stock issuance decisions. However, the index places more emphasis on competition, market value, and overall positioning. Robinhood’s clear service offerings and valuation likely strengthened its case for inclusion.

Despite the setback, Park advised patience. He suggested that Strategy could be considered for future inclusion once the committee views its market standing as suitable for the index.

“I guarantee you MSTR will be included in the S&P 500 index at the right time, when the grains of rice become a heap, when the subject becomes the object, when “quality” is found by the Committee,” he stated.