AppLovin Jumps on S&P 500 Inclusion Announcement
The advertising tech company, along with Robinhood, will join the benchmark index, prompting a rally in after-hours trading.
Shares of advertising technology firm AppLovin (APP) surged approximately 7% in extended trading Friday following an announcement from S&P Global that the company will be added to the prestigious S&P 500 index.
The move marks a significant milestone for the software company, which went public in 2021. AppLovin is set to join the benchmark index prior to the start of trading on September 22. The inclusion often leads to increased demand for a company's stock, as that track the S&P 500 are required to purchase shares.
AppLovin will replace MarketAxess Holdings in the index. In the same announcement, S&P Global also revealed that stock trading platform Robinhood Markets (HOOD) will replace Caesars Entertainment. The addition of two major technology-focused firms underscores the index's evolving composition.
The news provides a vote of confidence for AppLovin, which has seen remarkable growth. The company's stock has been a standout performer, , rewarding long-term investors. Its software, which helps developers market and monetize their mobile apps, has become a key tool in the mobile ecosystem.
This development follows a period of anticipation and volatility. In December, AppLovin shares dipped when another company was chosen for S&P 500 inclusion. However, this official announcement validates the company's large-cap status and business fundamentals, solidifying its position as a major player in the technology sector. The inclusion is a testament to the company's sustained growth and market leadership.