It’s official: Uber Technologies will be added to the S&P 500 index.
Uber, Jabil and Builders FirstSource will be added to the S&P 500 before trading begins on Dec. 18, according to S&P Dow Jones Indices, which monitors the index. The announcement came after the close of trading on Friday.
The Uber expansion is no surprise. At $116 billion, the ride-hailing company is the largest U.S. company by market capitalization not included in the S&P 500.
Uber qualified for inclusion in the S&P 500 after its third-quarter earnings report showed profitability compared to the previous four quarters based on generally accepted accounting principles.
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Uber shares rose 1.7% to $57.35 in regular trading on Friday and rose 4.6% to $59.99 in after-hours trading. Stocks often rise on news of a company’s inclusion in the S&P 500, as investors buy on the day of inclusion ahead of index-related purchases, hoping to benefit from potential gains from the announcement leading up to the inclusion date.
Jabil rose 3.1% to $120.60 in after-hours trading and Builders FirstSource rose 2.3% to $142.41.
The additions of the three companies coincide with the index’s quarterly rebalancing. S&P Dow Jones Indices often makes changes to the S&P 500 and other major indices at the time of quarterly rebalancing.
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S&P has also changed its mid- and small-cap indices.
In the S&P MidCap 400, Rambus and Comfort Systems USA will replace Jabil and Builders FirstSource, respectively. Additionally, Houlihan Lokey and Equitable Holdings will replace Topgolf Callaway Brands and Vestis.
In the S&P SmallCap 600, Sealed Air, Alaska Air and SolarEdge will replace Orthofix Medical, Rambus and Comfort Systems. Topgolf and Vestis will replace Clearfield and OneSpan, respectively. Alkermes, Amrstrong World Industries, National HealthCare and PJT Partners will replace Community Health Systems, Invesco Mortgage Capital, Avid Bioservices and James River Group Holdings, respectively, in the small-cap index.
Write to Andrew Bary at [email protected]
Originally posted 2023-12-02 11:52:29.