Robinhood Stock Is Falling Monday: What's Going On?

Robinhood Markets Inc HOOD shares are trading lower Monday after the company was not added to the S&P 500 on Friday.

What To Know: Traders bid up Robinhood shares last week in anticipation of potential inclusion in the S&P 500. The S&P Dow Jones Indices announced that membership would remain unchanged after the market close on Friday, sending shares of Robinhood lower alongside other companies that were thought to be strong candidates.

A company must have a market cap of at least $20.5 billion, report positive earnings and meet liquidity and float thresholds to be considered for the index, according to requirements posted for March.

Robinhood shares climbed to all-time highs in anticipation of potential inclusion. BofA said last week that Robinhood was a "prime candidate" to be added to the index this quarter.

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Robinhood also got a boost last week after the company provided updates on its May operating data. The company said total platform assets rose to an all-time high of more than $250 billion last month as net deposits year-to-date climbed 40% year-over-year to approximately $28 billion.

Robinhood also reported a 10% increase in equity notional trading volumes, a 5% increase in options contracts and a 30% month-over-month rise in crypto trading volumes. Margin balances climbed to an all-time high of approximately $9 billion at the end of May and cash sweep balances increased to an all-time-high of more than $30 billion.

Robinhood said last week that it planned to report complete operating data for May in the next few weeks.

HOOD Price Action: Robinhood shares fell in pre-market trading and weakness has carried into the regular session. The stock was down 6.41% at $70.06 at the time of publication Monday, according to Benzinga Pro.

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