Twitter to Join S&P 500

By Aisha Al-Muslim 

Twitter Inc. is slated to join the S&P 500 before trading opens on Thursday, according to S&P Dow Jones Indices, as the social-media platform replaces Monsanto Co. on the widely watched index.

Twitter is supplanting Monsanto as the agricultural company is due to be acquired by German pharmaceutical and chemical conglomerate Bayer AG in a deal expected to be completed soon. The move also means mutual and exchange-traded funds that track the S&P 500 will have to add Twitter to their holdings.

S&P said Netflix Inc. will replace Monsanto on the S&P 100. Netflix, founded in 1997, closed Monday trading with a market capitalization of $157.28 billion.

It is unusual that S&P included Twitter in the S&P 500 because companies are supposed to have four straight quarters of positive as-reported profits. In April, the social-media company reported its second consecutive profitable quarter after 16 straight quarters of losses. Twitter has said it expects to be profitable for the full year.

Shares of Twitter rose 3.6% to $39.24 in after-hours trading, while Netflix shares rose 0.2% to $362.69.

Separately Regenxbio Inc., a clinical-stage biotechnology company, will replace General Cable Corp. in the S&P SmallCap 600. Prysmian Group is acquiring General Cable in a deal expected to be completed soon.

Write to Aisha Al-Muslim at [e-mail]

(END) Dow Jones Newswires

June 04, 2018 18:51 ET (22:51 GMT)

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