AppLovin and Trade Desk Stocks Decline After Exclusion from S&P 500

On Monday, AppLovin (NASDAQ:APP) and The Trade Desk Inc. (NASDAQ:TTD) shares fell following the announcement that the companies would not be included in the latest rebalancing of the S&P 500 Index. AppLovin's stock sharply declined by 11%, while The Trade Desk saw a more moderate decrease of 1.6%.

Another significant technology company, Coinbase (NASDAQ:COIN), also failed to make it into the S&P 500, with its shares dropping by 3.3%. This news came during the periodic rebalancing of the index, aimed at maintaining its status as a reliable indicator of the large-cap market segment.

In contrast, shares of Apollo Global Management and Workday rose following the announcement that they would join the S&P 500. These companies will replace Qorvo and Amentum in the index. These changes reflect ongoing transformations in the market and the continuing effort of the S&P 500 to represent the large-cap market space.

The S&P 500 Index is considered one of the best single indicators for large-cap stocks in the U.S. The index comprises 500 leading companies and covers approximately 80% of the current market capitalization, making it a vital reference for investors. The addition or removal of companies can impact investor perception and stock performance, as seen in the market reactions following the latest rebalancing.