Facebook Joining S&P 500 Index

Standard & Poor’s announced on Wednesday that Facebook will be added to its S&P 500 index after the close of trading on December 20. This decision is part of a market reshuffle, with Facebook replacing Teradyne, a chip test equipment manufacturer.

Companies within the S&P 500 can be listed on either the Nasdaq or the New York Stock Exchange. The announcement followed Facebook’s report of its fourth consecutive quarterly profit in October, fulfilling one of S&P’s criteria for entry into the index. This year, Facebook’s market value has more than doubled to USD 123 billion.

Following the news, Facebook’s shares soared by as much as 4.7% to USD 51.69 in after-hours trading. In contrast, they had declined by 1.7% to USD 49.38 at the close of trading on Wednesday in New York.

In addition to Facebook, other companies joining the S&P 500 include Alliance Data Systems and flooring manufacturer Mohawk Industries, replacing Abercrombie & Fitch and JDS Uniphase, which specializes in optical technology.