Investing.com - Standard & Poor’s announced Wednesday that Facebook will join its S&P 500 index after the close of trade on December 20, as part of a reshuffle of its market trackers, replacing chip test equipment maker Teradyne.
Companies in the S&P 500 can be listed on either the Nasdaq or the New York Stock Exchange.
The announcement came after Facebook reported its fourth consecutive quarterly profit in October, one of the criteria that S&P uses to determine entry to the index. Facebook’s market value has more than doubled this year to USD123 billion.
The company’s shares climbed as much as 4.7% to USD51.69 in in after-hours trading following the announcement. They were down 1.7% to USD49.38 at Wednesday’s close in New York.
Other firms being added to the S&P 500 are Alliance Data Systems and flooring company Mohawk Industries. They are replacing teen retailer Abercrombie & Fitch and JDS Uniphase, a maker of optical technology.
Companies in the S&P 500 can be listed on either the Nasdaq or the New York Stock Exchange.
The announcement came after Facebook reported its fourth consecutive quarterly profit in October, one of the criteria that S&P uses to determine entry to the index. Facebook’s market value has more than doubled this year to USD123 billion.
The company’s shares climbed as much as 4.7% to USD51.69 in in after-hours trading following the announcement. They were down 1.7% to USD49.38 at Wednesday’s close in New York.
Other firms being added to the S&P 500 are Alliance Data Systems and flooring company Mohawk Industries. They are replacing teen retailer Abercrombie & Fitch and JDS Uniphase, a maker of optical technology.