Caesars Entertainment Stock Falls After S&P 500 Removal
The casino giant will be dropped from the benchmark index due to a significant decline in its market capitalization, triggering automatic selling from funds.
Shares of Caesars Entertainment (NASDAQ: CZR) declined after S&P Dow Jones Indices announced the casino operator will be removed from the prestigious S&P 500 index. The change, part of a regular quarterly rebalancing, is set to take effect before the start of trading on September 22, 2025.
The decision follows a steep drop in the company's market value, which has fallen to approximately $5.5 billion. This is well below the S&P 500's minimum threshold, which currently stands at $22.7 billion. Caesars' stock has struggled recently, falling nearly 30% since the beginning of the year and losing more than half its value over the past two years, burdened by a significant debt load of $12.3 billion.
Removal from the S&P 500 is a significant blow for any company. It often triggers a wave of selling pressure, as the that track the benchmark are forced to liquidate their positions. This can lead to reduced liquidity and increased volatility in the stock. Beyond the mechanical selling, being dropped from the index signals that a company no longer meets the stringent criteria for size and stability, potentially damaging investor confidence and increasing future borrowing costs.
As part of the index shuffle, , a move that reflects its diminished market capitalization. Taking its place in the S&P 500 will be the online brokerage Robinhood Markets (HOOD). The change underscores a shifting landscape in the market, as a newer financial technology firm replaces a legacy hospitality and gaming giant in the nation's most widely followed stock market benchmark.