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It’s official: Uber Technologies is joining the S&P 500 index.
Uber,
Jabil,
and
Builders FirstSource
will join the
S&P 500
prior to the opening of trading on Dec. 18, according to S&P Dow Jones Indices, which oversees the index. The announcement was made after the close of trading Friday.
The three companies will replace
Sealed Air,
Alaska Air Group,
and
Solaredge Technologies.
The Uber addition isn’t a surprise. At $116 billion, the ride-share company is the largest U.S. company ranked by market capitalization that wasn’t in the
S&P 500.
Uber stock gained 1.7% to $57.35 in regular trading Friday and has added 4.6% to $59.99 in after-hours trading.
Uber qualified for inclusion in the S&P after its third-quarter earnings report showed profitability based on GAAP accounting over the prior four quarters.
Jabil is up 3.1% to $120.60 and Builders FirstSource is up 2.3% to $142.41 in after-hours trading.
The additions of the three companies will coincide with the index’s quarterly rebalancing. S&P Dow Jones Indices often makes changes to the S&P 500 and other key indexes around the time of the quarterly rebalances.
Stocks often rally on news of being added to the S&P 500 as investors anticipate buying by index funds at the time of inclusion.
Write to Andrew Bary at andrew.bary@barrons.com
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