Coinbase to Join S&P 500, Shares Surge
Coinbase Global Inc. will officially join the S&P 500 index on May 19, replacing Discover Financial, which is being acquired by Capital One. The announcement sent Coinbase shares (COIN) up 11% in after-hours trading, following a 4% gain during the regular session.
Joining the S&P 500 is a major milestone, as it opens up a company’s stock to a wider pool of investors, including index funds and institutional portfolios.
Coinbase was passed over in the March reshuffle but now meets the S&P’s criteria, which consider not just market value but also profitability and public float.
Despite its upcoming inclusion, Coinbase recently posted a weak first-quarter earnings report, citing falling crypto prices and economic uncertainty as key challenges.
Coinbase Global Inc. will officially join the S&P 500 index on May 19, replacing Discover Financial, which is being acquired by Capital One. The announcement sent Coinbase shares (COIN) up 11% in after-hours trading, following a 4% gain during the regular session.
Joining the S&P 500 is a major milestone, as it opens up a company’s stock to a wider pool of investors, including index funds and institutional portfolios.
Coinbase was passed over in the March reshuffle but now meets the S&P’s criteria, which consider not just market value but also profitability and public float.
Despite its upcoming inclusion, Coinbase recently posted a weak first-quarter earnings report, citing falling crypto prices and economic uncertainty as key challenges.