Uber and Jabil to Join S&P 500 Index
Shares of Uber Technologies Inc. and Jabil Inc. experienced a surge in after-hours trading on Friday following the announcement by S&P Dow Jones Indices that these stocks will join the prestigious S&P 500 index in just over two weeks.
Uber, the popular ride-hailing company, and Jabil, a leading components maker, along with building-materials manufacturer Builders FirstSource Inc., will transition from the S&P MidCap 400 index to the S&P 500 SPX. This move will result in the replacement of Sealed Air Corp., Alaska Air Group Inc., and SolarEdge Technologies Inc. shares in the index.
Inclusion in the S&P 500 index is highly sought after by companies due to the increased exposure it offers to a wider range of investors. Additionally, passive funds and actively managed funds with investment restrictions are able to consider these stocks.
S&P Dow Jones stated that these changes, which are part of a routine rebalance, will be effective at market open on Monday, Dec. 18. This adjustment aims to ensure that each index is more representative of its respective market capitalization range, according to the index provider.
Jabil recently revised its quarterly and fiscal 2024 revenue outlook, citing weakened demand for its products and services. Uber, on the other hand, reported third-quarter earnings that surpassed Wall Street expectations last month.
Alongside Uber and Jabil's inclusion in the S&P 500, Houlihan Lokey Inc. and Equitable Holdings Inc. will move to the midcap index as well, replacing Topgolf Callaway Brands Corp. and Vestis Corp. Topgolf and Vestis, in turn, will join the S&P SmallCap 600 index.
This update reflects the ever-evolving nature of the stock market as companies rise and fall in prominence within various indices, shaping investment opportunities for shareholders and market participants alike.
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