Uber's maturity hits a new milestone
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Uber's stock is set to be added to the S&P 500 index.
Why it matters: Its inclusion is another sign of the company's maturity — a phase that at one point seemed far from being possible under co-founder Travis Kalanick's leadership.
Details: Since going public through a rocky IPO in 2019, the ride-share giant has expanded its services and bounced back from the depths of the pandemic.
- Its shares have climbed more than 42% over its lifetime as a public company, while those of its main rival Lyft have fallen over 84% during its own ride on public markets.
Be smart: Uber's inclusion in less than two weeks is no great surprise — it's the largest U.S. company by market cap that wasn't already in the index, Barron's notes.
- But joining presents advantages for Uber investors.
Zoom in: In the short term, index investors tracking the S&P will be forced to buy the stock, CNBC's Bob Pisani notes. And name recognition doesn't hurt for those on the list.
The impact: Shares shot up to near record highs on the news, with buyers hoping to profit from future gains.
- Yes, but: That doesn't mean the fundamentals of the business have changed.
Go deeper: Uber sees itself as a global EV ambassador
