BofA has named Robinhood a candidate for inclusion in the S&P 500. What will happen to the stock?

Bank of America sees Robinhood Markets as a prime candidate for inclusion in the S&P 500 broad market index later this week. If that happens, the company's securities, which already peaked on June 3, will get a boost as index funds tracking the S&P 500 start buying them.

Shares of trading platform Robinhood may be included in the S&P 500 broad market index later this week, according to BofA analyst Craig Siegenthaler. The company's securities have shown strong growth in 2025, but are not yet included in the index, CNBC writes.

«We see Robinhood as one of the top contenders for inclusion in the S&P 500 at the next lineup update,» Siegenthaler wrote in a note cited by the network.

Robinhood shares strengthened 5.5% in Tuesday trading to hit a new high of $71.72. The previous record of $70.39 was set shortly after the company's initial public offering in 2021.

The upcoming rebalancing of fund portfolios due to the inclusion of new companies in the index can have a positive impact on the stock prices of newcomers, notes CNBC. Even minor changes in indexes can trigger billions of dollars worth of trades, especially on rebalancing day, which usually falls on the third Friday of the last month of the quarter. On that day, funds that follow the index are forced to get rid of previous positions and buy new securities. Many active managers do the same so as not to deviate too much from the benchmark. One ETF SPDR S&P 500 Trust manages $600 billion in assets. For the companies included in the index, this means a potential surge in demand from index funds, the channel writes.

«For Robinhood or Ares, which are not yet included in any S&P index, we expect notable demand from passive funds - up to 17% of the freely traded shares (or 12% including counter sales),» Siegenthaler wrote.

In February, Robinhood securities were approaching their peak value thanks to a cryptocurrency rally and strong quarterly reporting. But then fell almost 50% due to the turmoil in the markets caused by Donald Trump's trade policy. The new all-time high was reached amid a general recovery in stocks and cryptocurrencies, according to Bloomberg.

Analysts say Robinhood's growth could be sustainable: its prospects in niches like prediction markets have been favorable in recent weeks, as well as its strategy to expand among new audiences not reached by exchanges.

«They've captured a whole generation with their patterns of trading behavior. Это геймификация торговли: весело, интерактивно — никто не делает это так, как они», — пояснил Bloomberg аналитик Mizuho Дэн Долев.

Robinhood has been actively using deals to attract new audiences in the past year. The company is entering the Canadian market through the acquisition of crypto platform WonderFi Technologies, which was announced in May. And on Monday, the broker announced the completion of a deal to buy European digital asset exchange Bitstamp.

According to Piper Sandler analyst Patrick Moley, in the short term, Robinhood and other crypto market-related stocks will feel confident as long as the bitcoin rally continues.

«Robinhood has significant potential to ramp up crypto operations, complementing its existing equities and options trading business. This diversified model could be a safety net in case of a downturn in crypto activity,» wrote Mowley in a note cited by Bloomberg.

A total of 21 analysts track the trading floor's securities, according to data from MarketWatch. Of these, 14 advise buying the stock (Buy and Overweight ratings), and seven advise holding (Hold). There are no recommendations to sell Robinhood securities. However, the Wall Street consensus price target of $61.1 implies the stock is down nearly 15% from its current value.