Uber Technologies Inc (NYSE:UBER) shares jumped close to 6% early Monday on news that the ride-hailing company will be included in the S&P 500 from December 18, 2023.
After the close of trade on Friday, S&P Dow Jones Indices announced that Uber and S&P MidCap 400 constituents Jabil Inc (NYSE:JBL) and Builders FirstSource will replace Sealed Air Corp, Alaska Air Group (NYSE:ALK) and SolarEdge Technologies in the index of its 500 biggest companies as part of its quarterly rebalance.
“The changes ensure each index is more representative of its market capitalization range,” S&P Dow Jones Indices said in a press release.
“All companies being added to the S&P 500 are more representative of the large-cap market space.”
To be included in the S&P 500, a company should be from the US and have a market capitalization of at least $8.2 billion. Its shares must be highly liquid with at least 50% of its outstanding stock available for public trading. Also, it must report positive earnings in the most recent quarter and the sum of its earnings in the previous four quarters must be positive.
At their best, Uber’s shares were up 5.9% before trading 5.3% higher at $60.38 shortly after midday in New York, valuing it at roughly $124 billion.
Jabil’s shares retreated 0.5% to $116.43 while Builders FirstSource was also down 0.5% at $138.67.
Contact the author at stephen.gunnion@proactiveinvestors.com