Robinhood and AppLovin to join the S&P 500, sending shares soaring
Robinhood, AppLovin, and Emcor will be added to the S&P 500 on September 22, replacing Caesar's Entertainment, MarketAxess Holding, and Enphase Energy.
S&P 500 is highly concentrated with rising valuations near 30x trailing P/E, suggesting rotation to high-income ETFs and value could outperform if a correction occurs.
The S&P 500 could rally roughly 50% within two years, driven largely by AI-fueled gains concentrated in a few mega-cap stocks, amid economic risks.