Robinhood Markets (HOOD) Hits New Record High on S&P 500 Inclusion

We recently published 10 Stocks With Eye-Popping Gains; 7 Soar to Fresh Highs. Robinhood Markets, Inc. (NASDAQ:HOOD) is one of the top performers on Monday.

Robinhood Markets rebounded to nearly hit its 52-week record high as investors loaded positions ahead of its official inclusion in the S&P 500 index.

At intra-day trading, Robinhood Markets, Inc. (NASDAQ:HOOD) hit its highest price for the day of $117.30, or just marginally shy of its 52-week record high of $117.70 apiece.

This followed the S&P Dow Jones Indices’ announcement late on Friday that Robinhood Markets, Inc. (NASDAQ:HOOD) was officially joining the S&P 500 index beginning September 22, replacing Caesars Entertainment.

Joining the benchmark index could be a huge boost to Robinhood Markets, Inc. (NASDAQ:HOOD) as its membership can help bolster its exposure to institutional investors and hedge funds.

The inclusion followed several months of speculation on whether it could gain a spot in the infamous benchmark after failing to join the previous quarterly rebalancing.

Investors typically load up positions in companies set to join benchmark indices to take advantage of a cheaper price, before hedge funds and institutional investors make massive acquisitions.

While we acknowledge the potential of HOOD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.