Robinhood (HOOD) shares have rallied significantly in recent sessions as investors again anticipated the fintech’s addition to the S&P 500 Index ($SPX).

Chevron’s (CVX) recent closure of its Hess acquisition has created a vacancy in the benchmark index, which many hoped would be filled HOOD. Instead, Block (XYZ) will fill the open spot. 

At the time of writing, Robinhood stock is trading well above 200% higher versus its April low and the company’s market cap is fast approaching the $100 billion level. 

Why Index Inclusion Is a Big Deal for Robinhood 

Robinhood shareholders have been hoping for inclusion in the S&P 500 Index as it would likely serve as a major boost to the company’s visibility and credibility among institutional players.

The benchmark status triggers automatic buying from a long list of index-tracking funds and ETFs, which would likely increase demand and liquidity for HOOD shares. 

Index inclusion also goes a long way in improving perception of financial stability and long-term relevance, attracting broader investor interest. 

Additionally, it would put Robinhood stock in the same league as established blue-chip companies, potentially driving valuation multiples higher as well. 

All in all, the fact that Robinhood has been passed over again for inclusion has left its supporters feeling deflated that it will continue to miss out on these benefits. 

What Other Catalysts Could Drive HOOD Shares Up in 2025?

Other than the potential addition of the financial technology firm to the S&P 500 Index, Citizens JMP analysts recommend owning Robinhood shares to play the crypto industry upside as well. 

The online trading platform stands to benefit as digital assets experience accelerated adoption into mainstream finance after President Donald Trump signed the “GENIUS Act” into law on July 18, it told clients in a recent report. 

According to the Citizens JMP analysts, HOOD stock is worth buying at current levels since the company’s growth prospects remain underestimated given the ongoing recovery in mergers and acquisition (M&A) and initial public offering (IPO) market. 

How the Rest of Wall Street Recommends Playing Robinhood Markets

Investors should note, however, that other Wall Street analysts find Robinhood stock as likely overvalued at its current price. 

While the consensus rating on HOOD shares remains at “Moderate Buy,” the mean target of about $90 indicates potential downside of more than 17% from here.