Jack Dorsey, co-founder and CEO of Twitter Inc. and Square Inc., will listen at the Bitcoin 2021 conference held in Miami, Florida on Friday, June 4th, 2021.
Eva Marie Uzcategui | Bloomberg | Getty Images
block Stocks rose more than 10% in Friday’s extension trading as FinTech Company was set to join the S&P 500. Hess.
It’s the second change to this week’s benchmark after S&P Global announced on Monday that the ad tech company will be added to the S&P 500. TradeDesk replaces software maker ANSYS. Synopsys In a deal that closed on Thursday.
Hess’ departure will soon come Chevron It completed the purchase of $54 billion from oil producers and won against ExxonMobil in a legal dispute over offshore oil assets in Guyana countries in South America.
According to a statement from S&P, the block will officially join the S&P 500 before trading begins on July 23rd. Stocks often ralise when added to a major index, as fund managers will have to readjust their portfolios to reflect changes.
Most changes to the S&P 500 are made during the index quarterly rebalancing. However, if the acquisition ends, you can remove the company from the index and replace it with an out-of-scheduled one. Last week, Datadog, which monitors software company Datadog, acquired Juniper Networks status on the S&P 500 as part of a quarterly change in the index.
The addition of Block brings even more technical weight to the index, which has been steadily moving in that direction in recent years, reflecting an increase in market capitalization for companies across the sector. Bloc, which gained popularity as Square due to the rapid growth of the company’s payment terminal, has expanded to crypto, lending and other financial services.
Founded by Jack Dorsey in 2009, Square changed its name to Block in 2021, highlighting its focus on blockchain technology.
Block stocks have fallen 14% this year, slowing performance in the broader US market. The NASDAQ has increased by more than 8%, while the S&P 500 has increased by 7%. Still, its market capitalization is around $45 billion, with the block far surpassing the index’s central companies.
In May, Block missed Wall Street’s expectations on Thursday, issued a disappointing outlook, reporting first quarter results leading to a sharp drop in stock prices. The Bullock’s second quarter and full-year forecasts reflect a challenging economic situation following President Donald Trump’s announcement of swept tariffs.
“We recognize that we operate in a more dynamic macro environment, so we reflect our annual guidance on macro outlooks,” the company wrote in its quarterly report.
The company plans to report second quarter results after the regular trading close on August 7th.
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