Facebook shares jump on S&P 500 and how! | socialexcerpts.com

Facebook shares jump on S&P 500
The shares of Facebook Inc. are on a swansong. The shares of the world’s largest social networking site jumped after Standard & Poor’s (S&P) Dow Jones announced through a statement that Facebook Inc. would replace Teradyne Inc. (TER) in its S&P 500 index. In addition to S&P 500, Facebook is all set to join S&P 100 replacing the Williams Cos.
The investor community rejoiced to the news and the stock has risen by more than eight percent since 12 December 2013. On December 16, the stock was trading at USD 53.69, up from USD 49.24 on December 11, 2013. Facebook will be added in the index on the closing of December 20, 2013. The stock is being traded on NASDAQ under the symbol ‘FB’. The other companies added in the S&P 500 index include giants like Alliance Data Systems Corp., a marketing solutions provider and Mohawk Industries Inc., a floor covering company.
This is one of the high points in the stock history of Facebook Inc. since its listing went through a lot of troughs. For instance, the opening was delayed on NASDAQ due to the struggle that was caused by a bulk of orders in the pipe. The confirmation of orders was also delayed throughout the first trading day. While many analysts had written off the issue, it is noteworthy that Facebook’s IPO was the third largest in the history of American stock market.
Facebook met the criteria of reporting four consecutive quarters of profitability set by S&P. This is one of the strictest criteria required by S&P. While Teradyne Inc. will lose its place in the S&P 500, Williams Cos. will continue to be part of the S&P 500 index. This event is certainly a trigger for market savvy investors to go bullish on the sound business viability demonstrated by the company.
It is believed that this event will eventually result in strong offerings of funding in startup Internet ventures in the Silicon Valley. It will encourage private investors to put their money in new ventures in the hope that the investment would get an exit through the attractive public route.
Facebook is one of the largest social networking platforms in the world. The website hosts nearly 1.19 billion active users, has more than 300 billion photos uploaded and over one billion comments created on a daily basis. Last but not the least, the human connection has resulted into more than 125 billion friendships. With such dynamic statistics in place, Facebook is all set to rule the roost for a long time now.