S&P 500 said on Friday that private equity firm KKR & Co (KKR.N), cybersecurity company CrowdStrike (CRWD.O) and internet service provider Go Daddy (GDDY.N) will be added to the benchmark S&P 500 before the market opens on June 24.
CrowdStrike shares rose 6 percent in after-hours trading, while KKR and Go Daddy rose 9 percent and 3.6 percent, respectively.
KKR and S&P 500
KKR has been a giant in the private equity (PE) world for decades. PE firms invest in private companies, help them grow, and eventually take them public and make big profits.
KKR’s inclusion in the S&P 500 is a sign of the times. These firms play a key role in helping companies grow before they go public.
So far only public companies have been invited, and with KKR on the guest list, private equity firms are finally getting the recognition they deserve — a big win for investors who want a piece of the PE business.
CrowdStrike and S&P 500
CrowdStrike`s technology leverages artificial intelligence (AI) and machine learning (ML) to proactively identify and stop cyberattacks. CrowdStrike’s focus on cloud-based solutions and AI-powered security resonates with businesses in today’s digital age. Data breaches and cyberattacks can cripple companies, and the demand for robust security solutions is only going to grow.
CrowdStrike’s addition to the S&P 500 signifies the increasing importance of cybersecurity in the modern business world. Data breaches and cyberattacks can cripple companies, and the demand for robust security solutions is only going to grow.
CrowdStrike’s presence in the index highlights this critical sector and offers investors exposure to a company at the forefront of the fight against cybercrime.
GoDaddy and S&P 500
Remember the days of scrambling to find a cool domain name for your website? GoDaddy, the company that made it easy, is now part of the S&P 500, a fancy list of top American businesses. Why’s this a big deal?
GoDaddy started by helping people grab those perfect website addresses. Today, they’re an all-in-one shop for small businesses (the mom-and-pop shops and local stores). GoDaddy offers tools to build websites, manage online marketing, and get noticed online – all in an easy-to-use package.
Now, with GoDaddy in the S&P 500, it shows how important going digital is for everyone. Having a strong online presence is like having a great storefront on Main Street, but for the whole world to see!
GoDaddy’s win is a win for small businesses everywhere. It means more resources and tools to compete in today’s online world.
A more dynamic S&P 500
The addition of KKR, CrowdStrike and GoDaddy highlights the S&P 500’s commitment to reflect the evolving nature of the American economy. The index includes not only established giants but also innovative companies shaping the future of finance, cybersecurity and the digital landscape. This rebalancing also creates opportunities for investors.
Shares of web platform company Go Daddy rose about 30% by the close of trading on Friday. Shares rose 4% in after-hours trading on Friday. To be eligible for the S&P 500, companies must be highly liquid U.S. companies with a market capitalization of more than $18 billion and meet profitability, liquidity and shareholding criteria.
According to May’s methodology, the thresholds for the S&P MidCap 400 and S&P SmallCap 600 indexes are $6.7 billion to $18 billion and $1 billion to $6.7 billion, respectively. Inclusion in benchmarks is becoming increasingly important for companies in a world increasingly dominated by passive investment funds.
Additionally, being included in the coveted S&P 500 increases a company’s investor profile and increases trading liquidity, a factor that can drive up its stock price.
The S&P 500 remains a key benchmark for the U.S. stock market. The inclusion of these three companies makes the index a more dynamic reflection of the American economy and provides valuable insights for investors and market observers alike.
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