Why Robinhood Markets Stock Zoomed 27% Higher Last Month

Shares of Robinhood Markets (NASDAQ: HOOD) shot up 37% last month, according to data from S&P Global Market Intelligence. The stock trading and financial services platform was added to the S&P 500 (SNPINDEX: ^GSPC). It also keeps posting impressive growth with new customer deposits, growing trading volumes, and seeing increased penetration of its personal finance products.Getting included in the S&P 500 does not change anything about the underlying business of a stock. However, Wall Street tends to buy into a stock that is added to the S&P 500, on the theory that more index funds will need to allocate to the stock.This is what happened in September when Robinhood was officially inducted into the S&P 500. The stock soared on the announcement, leading its market cap to balloon to well over $100 billion. Shares of the stock are now up more than 10x from where it was trading back in 2023, which was less than two years ago.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool