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(Bloomberg) – Super Micro Computers and Deckers Outdoors have been added to the S&P 500 Index in the latest quarterly weighting changes.
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S&P Dow Jones Indices said in a press release late Friday that the companies will replace Whirlpool Corporation and Zions Bancorp NA before the start of trading on March 18. Supermicro stock soared as much as 14% in post-market trading, while Decker’s Outdoor rose more than 2%.
California-based Supermicro has seen its stock rise nearly 220% this year alone as excitement around disruptive technology fuels demand for its servers, the chip infrastructure that runs artificial intelligence-powered applications. did. This year’s rise marks an increase of more than 240% through 2023.
Interest in the company increased after preliminary quarterly results announced last month exceeded expectations, and the company subsequently raised its sales forecast.
Supermicro CEO Charles Liang told Bloomberg last week that “market demand is very strong,” predicting sales of up to $25 billion.
Meanwhile, shares of Deckers Outdoor, the maker of Hoka running shoes and UGG boots, are up 35% this year. The company raised its full-year profit and sales forecasts in its latest financial report.
To qualify for the S&P 500, companies must be highly liquid U.S. companies with a market capitalization of at least $15.8 billion and meet profitability, liquidity, and free float criteria.
In a world increasingly dominated by passive investment funds, being included in benchmarks is becoming increasingly important for companies. Additionally, participation in the coveted S&P 500 increases a company’s visibility as an investor and increases trading liquidity. This is a factor that can push up a company’s stock price.
In the last rebalancing, Uber Technologies, Jabil, and Builders FirstSource replaced Sealed Air, Alaska Air Group, and SolarEdge Technologies in the S&P 500 index.
Read more: Uber, Jabil, Builders FirstSource to join S&P 500
–With assistance from Emily Graffeo, Ryan Vlastelica, and Jeran Wittenstein.
(Update stock price with after-hours trading)
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