--- title: "Robinhood Snubbed By S&P 500 Again, But Cathie Wood's Ark Invest Sees Big Upside In Sports-Finance Convergence" description: "Robinhood Markets Inc. shares fell over 7% as it was again excluded from the S&P 500 index, with Interactive Brokers taking its spot. Despite this, Cathie Wood's Ark Invest remains optimistic about Ro" type: "news" locale: "en" url: "https://longbridge.com/en/news/254556104.md" published_at: "2025-08-26T06:02:13.000Z" --- # Robinhood Snubbed By S&P 500 Again, But Cathie Wood's Ark Invest Sees Big Upside In Sports-Finance Convergence > Robinhood Markets Inc. shares fell over 7% as it was again excluded from the S&P 500 index, with Interactive Brokers taking its spot. Despite this, Cathie Wood's Ark Invest remains optimistic about Robinhood's potential in the sports betting sector through a partnership with Kalshi, which offers federally regulated event contracts. This model could disrupt traditional sportsbooks by providing lower fees and broader access. Robinhood's stock is up 173.68% year-to-date, despite recent declines. Shares of **Robinhood Markets Inc.** HOOD have stumbled, falling over 7% in the last five trading sessions, as it didn’t make it into the S&P 500 index again; however, a bullish outlook from **Cathie Wood**‘s **Ark Invest** sees the company poised to disrupt the multi-billion-dollar sports betting industry. Check out HOOD’s stock price here. ## **Interactive Brokers In! HOOD Still On The Sidelines** The S&P Dow Jones Indices announced late Monday that **Interactive Brokers Group Inc.** IBKR would join the benchmark index, taking a spot that many on Wall Street had anticipated would go to Robinhood. A place in the S&P 500 is highly sought after, as it guarantees a stock's purchase by countless passive index funds and increases its exposure to a wider range of investors. This marks the latest in a series of snubs for Robinhood, which has met key eligibility criteria but has been repeatedly overlooked by the index committee. ## **Ark Bets On HOOD Positioning In Sports Betting Industry** While the market reacts to the index exclusion, a recent commentary from Ark Invest highlights a strategic pivot that it believes could be a game-changer for Robinhood. The investment firm is focused on the company's new partnership with Kalshi to offer event contracts on sports, effectively creating a federally regulated prediction market. According to the commentary, this new venture could “reshape the way investors and consumers think about and respond to the convergence between sports and financial markets.” ## **DraftKings And FanDuel Face The Pressure** The key difference lies in the regulatory framework. While sportsbooks like DraftKings must navigate a complex “patchwork of state gambling laws,” Robinhood’s new offering is regulated by the Commodity Futures Trading Commission (CFTC). This allows the event contracts to function more like “tradable financial contracts than sports bets,” opening the door to a nationwide market with significantly less friction. ## **Betting On Robinhood More Economical?** Ark's analysis also points to a more transparent and cost-effective economic model. Robinhood charges a flat $0.02 fee per contract, a stark contrast to traditional sportsbooks that embed a 4-6% margin, or “vig,” into their odds. This structure means bettors often need to win 52-55% of the time just to break even. In its conclusion, Ark suggests that Robinhood's approach—combining federal oversight, lower fees, and broader access—is a pioneering model that could ultimately “turbocharge the convergence between sports and financial markets.” ## **Price Action** HOOD shares closed 1.26% lower on Monday and fell 0.50% after hours. It was down 7.04% in the last five sessions. but higher by staggering 173.68% year-to-date. The stock has surged by 414.98% over the year. **Benzinga’s Edge Stock Rankings** indicate that HOOD maintains a stronger price trend in the short, medium, and long terms. However, the stock scores poorly on value rankings. Additional performance details are available here. The **SPDR S&P 500 ETF Trust** SPY and **Invesco QQQ Trust ETF** QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, fell on Monday. The SPY was down 0.44% at $642.47, while the QQQ also declined 0.29% to $570.32, according to Benzinga Pro data. On Tuesday, the futures of the S&P 500, Dow Jones, and Nasdaq 100 indices were trading lower. - **Scoring Big: How Kalshi Is Shaking Up DraftKings, FanDuel This NFL Season** ***Disclaimer:*** *This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.* *Photo Courtesy: Sergei Elagin On Shutterstock.com* ### Related Stocks - [HOOD.US - Robinhood](https://longbridge.com/en/quote/HOOD.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 11:50 ETBluecore Deepens Transparent ID Network Through Strategic Partnership with dentsu | Bluecore has announced a strategic partnership with dentsu to enhance its Transparent ID Network, improving identity cov | [Link](https://longbridge.com/en/news/275786452.md) | | Research Alert: CFRA Upholds Buy Rating On Shares Of Robinhood Markets, Inc. | CFRA maintains a Buy rating on Robinhood Markets, Inc. despite a Q4 revenue miss and increased expense guidance for 2026 | [Link](https://longbridge.com/en/news/275646945.md) | | Ibn Al Haytham Hospital FY Income 301,281 Dinars | Ibn Al Haytham Hospital Company PSC (IBNH.AM):IBN AL HAYTHAM HOSPITAL FY NET INCOME AFTER TAX 301,281 DINARSIBN AL HAYTH | [Link](https://longbridge.com/en/news/275996849.md) | | X exec Nikita Bier says in-app trading coming in a 'couple' of weeks | X's head of product, Nikita Bier, announced that the Smart Cashtags feature will enable in-app trading of stocks and cry | [Link](https://longbridge.com/en/news/275987349.md) | | Advance Auto Parts’ Heavy Debt Load Raises Liquidity, Refinancing and Turnaround Risks | Advance Auto Parts Inc (AAP) is facing significant financial risks due to its heavy debt load, which may limit liquidity | [Link](https://longbridge.com/en/news/275997122.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.