by Christopher Freeburn | December 12, 2013 9:57 am
Shares of Facebook (FB) surged more than 3% in Thursday morning trading after it was announced that the FB will join two prominent stock indexes.
At the end of trading on Dec. 20, FB will replace Teradyne (TER) on the S&P 500. Facebook will also be added to the S&P 100 index, as Williams Companies (WMB) departs. FB has a current market capitalization of about $121.2 billion, making it the 30th most valuable corporation included in the S&P index, USA TODAY notes.
The Williams Cos will remain in the S&P 500, while Teradyne joined the S&P MidCap 400, where it replaces Scholastic (SCHL).
Last year, FB went public in a glitch-plagued IPO that resulted in lawsuits and SEC fines against the Nasdaq exchange. FB stock spent months trading well below its IPO price as investors questioned the company’s ability to generate revenue.
Facebook has since shaken off that rocky start, earning new respect from analysts as it moved to derive more ad dollars from its social media services, including Instagram.
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