Twitter ready to enter the S&P 500. The share of the popular social network, starting from Thursday 7 June, will start trading within the New York index dedicated to the 500 companies with the largest capitalization in the United States.
News welcomed by Wall Street investors who flooded yesterday Twitter shares with a shower of purchases. At the close of the American stock exchanges, the stock was up 3,36%, with gains continuing even in the afterhours up to 39 dollars per share and a stock market value which had risen to over 28 billion dollars. In today's pre-market, the stock is up 3,8%.
In the S&P 500 Twitter will take the place of Monsanto, whose brand will disappear from June 7, following the 63 billion dollar wedding with Bayer. The biotech company's farewell to the stock market also entails another move. In the S&P 100 index, basket that includes 102 companies listed on US markets with the largest capitalization, Netflix will replace Monsanto.
Returning to Twitter, the investor ferment is not unjustified. Landing in the S&P 500 means among other things that mutual funds and index-tracking ETFs will also need to add the social network's stock to their holdings.
It should be underlined that the choice of the top leaders of the New York stock market took everyone on Wall Street by surprise, given that, usually, in order to access the S&P 500 it is necessary for companies to achieve a profit for four consecutive quarters. In the first three months of 2018, Twitter reported the second straight quarter of profit, after 16 quarters in the red. However, the entire fiscal year should close on a positive note.
