Facebook to join S&P 500

Thu Dec 12, 2013 5:56am IST

The Facebook logo is pictured at the Facebook headquarters in Menlo Park, California January 29, 2013. REUTERS/Robert Galbraith/Files

The Facebook logo is pictured at the Facebook headquarters in Menlo Park, California January 29, 2013.

Credit: Reuters/Robert Galbraith/Files

Stocks

   

REUTERS - Standard & Poor's on Wednesday said Facebook Inc(FB.O) will join its S&P 500 stock index after the close of trading on December 20, cementing the social media network's rise into one of the biggest, most powerful U.S. companies.

The decision follows Facebook reporting its fourth straight profitable quarter in October, one of the criteria that S&P uses to determine eligibility for the index.

Facebook shares rose 4.3 percent to $51.51 following S&P's announcement after regular market hours. Shares often rise after a company is tapped for inclusion in the S&P 500, because many investors track the index and buy shares of companies that enter it.

The Menlo Park, California-based company's shares had closed Wednesday down 87 cents at $49.38, about 30 percent above their $38 initial offering price in May 2012, and giving it a roughly $121 billion market value, Reuters data show.

S&P said on December 20 it will also add marketing solutions company Alliance Data Systems Inc (ADS.N) and floor covering company Mohawk Industries Inc (MHK.N) to the S&P 500, and remove Abercrombie & Fitch Co (ANF.N), JDS Uniphase Corp (JDSU.O) and Teradyne Inc (TER.N). Facebook will also replace Williams Cos (WMB.N) in the S&P 100 index of large U.S. companies. Williams will remain in the S&P 500. (Reporting by Jonathan Stempel in New York; Editing by Bernard Orr)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Earnings Season

Earnings Season

Reliance Q4 sales rise, refining margin narrows.  Read 

Innovative Solution

Innovative Solution

Turning smog into jewels - a Dutch designer's solution to Beijing's pollution.  Video 

Insider Trading

Insider Trading

Rajaratnam's brother loses bid to dismiss insider trading charges.  Full Article 

Literary Giant Dies

Literary Giant Dies

Mourning and memories in Gabriel Garcia Marquez's languid hometown.  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage