Facebook replaced electronic-gear-testing maker Teradyne in the S&P 500, and oil and gas storage and transportation outfit The Williams Cos. in the S&P 100.
S&P Dow Jones Indices also announced that Facebook will be added to the Internet Software & Services Sub-Industry index in the S&P 500 GICS (Global Industry Classification Standard).
The changes take effect after the close of trading Dec. 20.
According to USA Today, based on Facebook’s market value at the close of trading Wednesday, the company would rank No. 30 in value on the S&P 500.
Jason Benowitz of Roosevelt Investment Group told Bloomberg:
Including Facebook in the S&P 500 represents that the social network is here to stay, and it will remain relevant to users, advertisers, and developers for the foreseeable future. As the company proved it could adapt to mobile and continue to capture users, it also proved that it has staying power.
And Hudson Square Research Analyst Daniel Ernst told Bloomberg:
There’s a certain degree of establishment that comes with it. Facebook is absolutely established, with a billion users worldwide, some of the highest operating margin metrics, and they’re still growing.
Readers: What do you think of Facebook being added to the S&P 500 and S&P 100?