Robinhood, AppLovin fall after S&P 500 inclusion snub

Shares of online brokerage Robinhood Markets HOOD.O drop 7.1% to $69.6 after rallying more than 10% last week; stock set to snap a six-day winning streak

S&P Dow Jones Indices announced on June 6 that it will not be making any changes to the S&P 500 .SPX index as part of its latest rebalancing

Bank of America had said in a note dated June 3 that HOOD was the primary candidate to join the benchmark index

Marketing platform AppLovin APP.O, which also rallied last week on bets of inclusion, drops 6.1% to $392.3

Another stock that BofA viewed as a potential addition to the S&P 500 was alternative investment manager Ares Management ARES.N; its shares are down 1.2%

"For Robinhood and Ares Management, which aren't a part of the S&P 400, we would expect significant buying activity from passive funds," BofA analysts had said in the June 3 note

As of last close, HOOD shares have more than doubled YTD, well above the company's 2021 IPO price of $38