Uber Technologies Inc.'s stock to join S&P 500 index in late December
Date
12/5/2023 7:43:20 AM
(MENAFN) In a significant development indicating a remarkable recovery, Uber Technologies Inc.'s stock is poised to join the S&P 500 index later this month, signaling a positive shift for the ride-hailing and delivery giant. The decision, announced by S&P Dow Jones indices on Friday, positions Uber to be included in the benchmark index before the opening of regular trading on December 18.
The inclusion in the S&P 500 is considered a substantial boost for a stock, as the index is closely monitored by numerous funds designed to replicate its holdings. This widespread tracking, particularly by funds linked to 401(k) accounts, leads to increased demand for stocks in the index, subsequently driving up their market value.
Following this news, Uber's stock experienced a 2 percent surge on Monday, closing at USD58.63 per share, a level not far from its all-time high of USD63.18 per share set in February 2021. This surge reflects a significant turnaround from the summer of 2022 when the stock was valued at USD20.46.
Uber's business faced considerable challenges during the pandemic, particularly in its ride-hailing segment, as government-imposed lockdowns kept people at home, diminishing the demand for transportation services. Responding to these challenges, Uber strategically bolstered its food-delivery division, turning it into a substantial revenue driver. This move, coupled with broader shifts in consumer behavior, contributed to the company's resilience and eventual rebound.
The company's journey from pandemic-induced struggles to S&P 500 inclusion signifies a notable achievement and underscores its adaptability in navigating dynamic market conditions. Investors and industry observers will be closely watching Uber's performance within the S&P 500 as the company continues to evolve in the post-pandemic landscape.
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