Facebook will join the Standard and Poor’s 100 and 500, blue chip indices that serve as a benchmark for the economy, on Dec. 20. The news, which was announced by the S&P late Wednesday, sent Facebook’s stock up as much as nearly 5% in after hours trading as the S&P comes with a built-in base of fund managers.
The move had been rumored for months as Facebook reported several consecutive quarters of profitability as a public company and its market cap ballooned to well above $100 billion, making it the largest company not to be included in the index. Facebook will replace The Williams Companies in the S&P 100 and Teradyne in the S&P 500.
Facebook joined another notable index, the Nasdaq 100, almost exactly a year ago, which further established its position as one of the world’s leading tech companies.