Uber (UBER) shares gained after it was announced the ride-share company will be added to the S&P 500 index (^GSPC). It comes after the company reported two consecutive profitable quarters, which helped lift its market capitalization to more than $120 billion. Yahoo Finance's Seana Smith and Brad Smith explains why the addition to the index could be a positive catalyst for the stock. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
UBER's addition to the S&P 500 index is likely to boost its stock price.
Uber's stock is set to join the S&P 500 index later this month, the latest sign that the ride-hailing and delivery company is turning its business around after struggling through much of the pandemic. The San Francisco company will be added to the benchmark index prior to the opening of regular trading on Dec. 18, S&P Dow Jones Indices said late Friday. Inclusion in the S&P 500 can be a big boost for a stock because the index is widely tracked by many funds designed to mirror the holdings of the S&P 500, which is at the heart of many 401(k) accounts.