AppLovin Stock Surges Nearly 12% on S&P 500 Inclusion
The mobile ad-tech firm will join the benchmark index on September 22, fueling a rally on expected demand from index-tracking funds.
Shares of AppLovin Corp. (APP) jumped nearly 12% in response to the news that the mobile technology company is set to join the prestigious S&P 500 index. The inclusion, which is a significant milestone for the firm, will be effective prior to the opening of trading on Monday, September 22, 2025.
The rally was triggered after as part of its quarterly rebalance. AppLovin, along with Robinhood Markets (HOOD) and Emcor Group (EME), will be added to the index, replacing MarketAxess Holdings, Caesars Entertainment, and Enphase Energy.
Inclusion in the S&P 500 is highly coveted as it forces passive index funds and exchange-traded funds (ETFs) that track the benchmark to purchase the stock, creating significant institutional demand. This move is seen as a major validation of AppLovin's business model and its successful pivot towards its AI-driven advertising platform. The company's focus on its core AI capabilities has fueled impressive growth, with its stock surging over 700% in the past year.
The decision to add AppLovin to incorporate more innovative, high-growth technology companies that are shaping the modern economy. While the addition provides a structural tailwind for the stock, some analysts note its high valuation calls for a balanced outlook. The upcoming index inclusion solidifies AppLovin's position as a key player in the digital advertising and mobile app ecosystem.