Investor hopes were high after Bank of America said last week that HOOD stock is a prime candidate to join the S&P 500.

Shares of Robinhood Markets Inc. (HOOD) slid 6% at the opening bell on Monday after the stock failed to make it into the S&P 500 index inclusion this quarter.

S&P Dow Jones Indices announced on Friday that the components of the S&P 500 will remain the same during the quarterly rebalancing.

The slide in HOOD stock comes after it gained over 37% over the past month. Investor hopes were high after Bank of America said last week that HOOD stock is a prime candidate to join the S&P 500.

On Thursday, Goldman Sachs raised its price target on Robinhood to $81 from $72 while keeping a ‘Buy’ rating on the shares.

The firm highlighted Robinhood’s "strong" preliminary May monthly metrics that imply better product trading volumes, higher margin balances, and momentum in assets under custody growth.

Last month, Robinhood announced that it is rolling out its desktop trading platform, Robinhood Legend, in the U.K. The platform, launched in the U.S. in October 2024, is fully customizable and will be available at no additional cost to all Robinhood account holders.

Robinhood said its U.K. customers displayed interest in Robinhood Legend and were eager for the platform to be introduced in their country.

The platform offers a personalized trading setup, allowing customers to organize their screen with the tools they need to execute their trading strategy, build their own custom layout, link widgets to create synced groups, and instantly update symbols across layouts and tabs.

Meanwhile, Redburn Atlantic downgraded Robinhood to ‘Sell’ from ‘Neutral’ on Monday and raised its price target to $48 from $40, according to TheFly.

The analyst noted that Robinhood has executed a notable turnaround, with customer and deposit growth reaccelerating.

Redburn, however, pointed out that the bull case for the stock requires conviction that recent improvements are sustainable. It said there is some uncertainty around the company's "moats," adoption rates of new products, and the durability of user engagement.

At the same time, Deutsche Bank raised its price target on Robinhood to $85 from $70 and kept a ‘Buy’ rating on the shares.

HOOD stock has gained nearly 90% this year and has tripled in value over the past 12 months.

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