Uber’s Stock Rises as It Joins the S&P 500

In preparation for its launch in Monday trade, Uber reached a fresh 52-week high and is poised to join the S&P 500. The ride-hailing service is the largest US corporation not included in the index, with a market value of over US$127 billion.

This action comes after an incredible year for Uber that included record ridership, strong quarterly earnings, regulatory wins in the US and the UK, and a stock rise of more than 150% in 2023.

For the first time ever, Uber declared an operating profit in August of that year. The ride-hailing startup reported a US$394 million profit for the second quarter, primarily as a result of higher demand and cost-cutting initiatives.

To ensure that it accurately reflects the US market, the 500 biggest businesses listed on the stock market are represented by the S&P 500, which is rebalanced every quarter. Companies are assessed according to standards including market capitalization, corporate earnings, and liquidity. During this rebalancing, Uber will be added along with Jabil and Builders FirstSource, while Sealed Air, Alaska Air, and SolarEdge Technologies would lose their positions.