Robinhood Stock Is Falling Monday: What's Going On?

Zinger Key Points

Robinhood Markets Inc HOOD shares are trading lower Monday after the company was not added to the S&P 500 on Friday.

What To Know: Traders bid up Robinhood shares last week in anticipation of potential inclusion in the S&P 500. The S&P Dow Jones Indices announced that membership would remain unchanged after the market close on Friday, sending shares of Robinhood lower alongside other companies that were thought to be strong candidates.

A company must have a market cap of at least $20.5 billion, report positive earnings and meet liquidity and float thresholds to be considered for the index, according to requirements posted for March.

Robinhood shares climbed to all-time highs in anticipation of potential inclusion. BofA said last week that Robinhood was a "prime candidate" to be added to the index this quarter.

Check This Out: Tom Lee Dismisses Worries Over Tumbling TSLA Stock Amid Elon Musk-Trump Feud: ‘Tesla Still Holds All Of Its Advantages, So We Aren’t Too Concerned’

Robinhood also got a boost last week after the company provided updates on its May operating data. The company said total platform assets rose to an all-time high of more than $250 billion last month as net deposits year-to-date climbed 40% year-over-year to approximately $28 billion.

Robinhood also reported a 10% increase in equity notional trading volumes, a 5% increase in options contracts and a 30% month-over-month rise in crypto trading volumes. Margin balances climbed to an all-time high of approximately $9 billion at the end of May and cash sweep balances increased to an all-time-high of more than $30 billion.

Robinhood said last week that it planned to report complete operating data for May in the next few weeks.

HOOD Price Action: Robinhood shares fell in pre-market trading and weakness has carried into the regular session. The stock was down 6.41% at $70.06 at the time of publication Monday, according to Benzinga Pro.

Loading...
Loading...

Read Next:

Photo: NRSPro/Shutterstock.

HOOD Logo
HOODRobinhood Markets Inc
$73.620.30%

Stock Score Locked: Want to See it?

Benzinga Rankings give you vital metrics on any stock – anytime.

Reveal Full Score
Edge Rankings
Momentum
98.31
Growth
96.15
Quality
Not Available
Value
13.88
Price Trend
Short
Medium
Long
Market News and Data brought to you by Benzinga APIs

Comments
Loading...