AppLovin Corp. (NASDAQ:APP) shares jumped over 11% after S&P Dow Jones Indices said the company will be added to the S&P 500.
S&P Dow Jones Indices announced late Friday that AppLovin Corp., Robinhood Markets Inc. (NASDAQ:HOOD), and Emcor Group Inc. (NYSE:EME) will join the S&P 500 as part of its quarterly rebalance. The changes will take effect before markets open on September 22.
The three new additions will replace MarketAxess Holdings Inc. (NYSE:MKTX), Caesars Entertainment Inc. (NASDAQ:CZR), and Enphase Energy Inc. (NASDAQ:EPH), which are being moved to smaller-cap indexes.
Also Read: Jim Cramer: AppLovin Calls For Prudence, This Health Care Stock Is ‘Pure Spec’
AppLovin’s inclusion represents a pivotal milestone, with shares rallying on the announcement as S&P Dow Jones Indices adjusts its benchmarks to better reflect market capitalization ranges.
For AppLovin, entry into the S&P 500 delivers immediate buying pressure from index funds, broader institutional ownership through pensions and ETFs, enhanced market credibility, greater liquidity, and lower capital-raising costs, cementing its evolution into a large-cap, mainstream tech player.
AppLovin’s 52-week range spans from a low of $82.51 to a high of $525.15. Since hitting its low, the stock has exploded, gaining approximately 554% to its current level. In firming its upward trajectory, the stock has rebounded sharply, climbing over 100% in the past six months, and is now up nearly 66% year-to-date.
Price Action: APP shares were trading higher by 11.45% to $546.38 at last check Monday.
Read Next:
Photo by Piotr Swat via Shutterstock
