Uber, Jabil, and Builders FirstSource set to join S&P 500
livemint.comUber Technologies Inc. has been added to the S&P 500 Index, after reporting two straight quarters of operating profits that have fueled a big rally in the ride-sharing company this year. Jabil Inc.
and Builders FirstSource Inc. are set to join too. San Francisco-based Uber and the latter two companies will replace Sealed Air Corp., Alaska Air Group Inc., and SolarEdge Technologies Inc.
in the S&P 500, respectively. The new additions will join the index prior to the market opening on December 18, S&P Dow Jones Indices said in a press release late Friday. Shares of Uber were up 7.3% in after-hours trading.
They’ve gained 132% this year. Shares of manufacturing services company Jabil were up by 4.6% and supplier and manufacturer Builders FirstSource saw post-market gains of close to 7%. Wall Street analysts had predicted Uber would be added to the index after the company’s third-quarter results showed a second consecutive profitable quarter — a financial viability requirement for inclusion in the benchmark index.
Prior to its inclusion, Uber was one of the largest US companies eligible to be added to the S&P 500 with a market capitalization of over $118 billion. Uber’s rideshare business continued to expand faster than analysts expected in the third quarter, thanks to improvements in driver supply and trip growth from back-to-school rides and the return of corporate travel. Uber also included new offerings in the past quarter such as partnering with Alphabet Inc.’s Waymo to provide ride-hailing of autonomous vehicles on its app, starting in Phoenix.
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