Ride hailing and delivery company Uber Technologies (UBER) is joining the S&P 500 index before the start of trading on Dec. 18.
Uber qualified for inclusion in the S&P 500 index after its third-quarter financial results showed profitability over the previous four quarters.
With a $116 billion U.S. market capitalization, the ride-share company was the largest U.S. company that wasn’t part of the benchmark S&P 500 index.
Uber replaces Sealed Air (SEE) in the S&P 500. Other companies that are joining the index in December include Jabil (JBL) and Builders First (BLDR).
Alaska Air Group (ALK) and SolarEdge Technologies (SEDG) are also being removed from the S&P 500 index.
The addition of Uber and the other companies comes as part of the index’s quarterly rebalancing process.
Stocks that are added to a major index often rise as they get purchased by mutual funds and exchange-traded funds that track the performance of benchmarks such as the S&P 500.
Uber’s stock rose about 5% on news of its inclusion in the S&P 500. The company’s share price is up 131% this year at $58.63 U.S.
