Au revoir, Teradyne Inc. and Williams Cos.: The social network has arrived.
Facebook Inc. rose as much as 4.1 percent following an announcement that it will join the benchmark Standard & Poor’s 500 Index (SPX) next week, cementing the social-networking company’s recovery from the turbulence that surrounded its initial public offering last year….
Gaining entry to the benchmark gauges provides Facebook with a guaranteed base of shareholders from funds that follow the indexes. More than $5.14 trillion tracks the S&P 500, according to the S&P website….
About 19 months after its IPO, Facebook is already a member of the Russell 1000 Index and the MSCI World Index. It joined the Nasdaq-100 Index in December 2012 after the exchange operator cut its usual waiting period as part of negotiations that led to Facebook choosing to list on the Nasdaq Stock Market rather than the New York Stock Exchange.
And, in a poignant, generational passing of the wasting-teenage-time torch, as Facebook enters, Abercrombie departs.
Alliance Data Systems Corp. and Mohawk Industries Inc. will also join the S&P 500, replacing Abercrombie & Fitch Co. and JDS Uniphase Corp., S&P Dow Jones said yesterday.
Facebook Will Replace Teradyne in S&P 500 Index Next Week [Bloomberg via BW]