Facebook to join the S&P 500, shares spike 4%
Jeff Chiu/APFacebook CEO Mark Zuckerberg.
By Jonathan Stempel

Standard & Poor's says Facebook will join its S&P 500 stock index after the close of trading on Dec. 20, cementing the social media network's rise into one of the biggest, most powerful U.S. companies.

The decision follows Facebook (FB) reporting its fourth straight profitable quarter in October, one of the criteria that S&P uses to determine eligibility for the index.

Facebook shares rose 4.3 percent to $51.51 following S&P's announcement Wednesday after regular market hours. Shares often rise after a company is tapped for inclusion in the S&P 500 (^GPSC), because many investors track the index and buy shares of companies that enter it.

The Menlo Park, Calif.-based company's shares had closed Wednesday down 87 cents at $49.38, about 30 percent above their $38 initial offering price in May 2012, and giving it a roughly $121 billion market value, Reuters data show.

S&P said on Dec. 20 it will also add marketing solutions company Alliance Data Systems (ADS) and floor covering company Mohawk Industries (MHK) to the S&P 500, and remove Abercrombie & Fitch (ANF), JDS Uniphase (JDSU) and Teradyne (TER). Facebook will also replace Williams Cos. (WMB) in the S&P 100 index of large U.S. companies. Williams will remain in the S&P 500.

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Great. In a couple years when FB's novelty and popularity wanes, and their growth ceases, they'll drag down the S&P 500 for a couple years - until it gets taken OFF that index.

December 12 2013 at 11:05 PM Report abuse rate up rate down Reply

I wonder who Zuckerman paid off to get into the S&P 500. The S&P 500 is no longer a reliable index, as it favors trash stocks.

December 12 2013 at 7:06 PM Report abuse +1 rate up rate down Reply

Please get rid of all this junk from the page, except the story - which is the reason I clicked on it in the first place. If I want to forward the story, I don't want to send a way to read my portfolios. That is nobody's business. Also, when you click on the e-mail button, your e-mail send screen does not allow me to use my drop-down menu where all the e-mail addresses are stored. I can't remember each e-mail or web address. That's why my computer does that. P.S. I don't do ANY social networking.... Doesn't anyone have any better things to do with their time?

December 12 2013 at 1:39 PM Report abuse +3 rate up rate down Reply
1 reply to brargos's comment

Agree. You'll just have to cut 'n' paste and embed in your email, I guess. I always include a link when I do that.

I also refuse to do any social networking. It's an inane waste of time for little people who want to feel important for doing absolutely NOTHING.

I use DuckDuckGo as my search engine and I use Firefox as my browser and I do store passwords that way. It's really become a PIA that every different company has different password requirements. Who can remember them all?

It's the mess that is the internet these days.

December 12 2013 at 1:48 PM Report abuse +2 rate up rate down Reply

HP has now made it mandatory for HP users who respond to and make comments must have a Facebook account..

I cancelled my HP account.

This was ordered by Arianna Huffington, She must have an interest in facebook as it is about to go public.....

December 12 2013 at 9:55 AM Report abuse +4 rate up rate down Reply
3 replies to kenyng's comment
Tom Harrell

I can\'t comment on the Hufpo/AOL comment site because I don\'t have a Moblie Phone number to verify my \"FACEBOOK ACCOUNT\" (that I\'ve had for a couple of Years now) !--------------I guess if I BUY a Mobile Phone and a Subscription to a Phone Service (for a couple of HUNDRED DOLLARS) then I can \"REGAIN\" that part of the AOL service that I\'ve been paying for the last \"10 YEARS\" ----------------And \"NOW\" I see that Facebook is doing some \"MONEY MAGIC\" on the Stock Market at the same time that ME and a lot of Other Facebook and AOL Subscribers have Lost the ability to Comment.

I\'m not saying there\'s any kind of \"SCAM\" or \"CON\" going on here but it sure feels a lot like Someone\'s got their HANDS in my POCKET----------AGAIN !

December 12 2013 at 7:53 AM Report abuse +4 rate up rate down Reply
2 replies to Tom Harrell's comment

Exactly. I don't give ANYONE my cell number except my husband and my disabled sister, in case of emergency. I sure am NOT giving to HP.

They can just go away. I don't need that kind of intrusion in my life.

(BTW I did fill out the form requesting a pseudoname and have never heard back from them. I really don't expect to. Oh well - good riddance.)

December 12 2013 at 1:39 PM Report abuse +2 rate up rate down Reply
1 reply to Susan's comment

Huffington Post wants to track you. They are supporter of Obmam and his NSA spying.

December 12 2013 at 7:02 PM Report abuse +1 rate up rate down

You need a mobile phone for a FB account verification????

December 12 2013 at 11:02 PM Report abuse rate up rate down Reply