Dec. 12 (UPI) — Facebook’s status was updated to join the S&P 500 index, effective after market close Dec. 20, and investors are liking the change, as Facebook shares spike more than 5 percent Thursday.
The company went public in 2012 and will replace much older tech company, Teradyne, in the S&P 500. Teradyne develops testing products for technology equipment such as semiconductors. Facebook’s upgrade puts it in far better standing with investors, who have had fluctuating opinions about the social networking company since its troubled initial public offering.
Facebook will also be joining the S&P 100 index of the largest U.S. companies, replacing Oklahoma-based energy company William Companies.
After losing half its value in the months after its IPO, Facebook’s value has more than doubled over the last year, rising to $123 billion. Facebook, based in Menlo Park, Calif., has an advantage its social media counterparts don’t — Facebook is profitable. Meanwhile Twitter, which went public in November, is yet to turn profits.
Meanwhile, Teradyne will take the place of Scholastic Corp. in the S&P MidCap 400 pushing Scholastic down to replace Lincoln Educational Services Corp in the S&P SmallCap 600. Williams Company will remain in the S&P 500.