Palantir Technologies CEO Alex Karp travels to Sun Valley, Idaho, to attend the morning session of the Allen & Co. Media and Technology Conference on July 10, 2024.
David Paul Morris | David Paul Morris Bloomberg | Getty Images
Palantir The stock rose 14% on Monday and hit its highest level since early 2021 following the announcement late Friday that the stock would be added to the S&P 500 Index.
Palantir is joining the index Dell. Palantir and Dell are replacing American Airlines and etsiS&P Global said separately in a report Press release.
Shares of companies included in the benchmark typically rise after the announcement, as fund managers tracking the index regularly update their portfolios to reflect the additions. Dell shares rose nearly 4% on Monday.
To join the S&P 500, a company must report profits in its most recent quarter and have cumulative profits in its most recent four quarters. exist Season 2Palantir’s net profit totaled $135.6 million, up from $27.9 million in the same period last year. The company became profitable in the last quarter of 2022.
Technology companies account for a growing share of the S&P 500, reflecting their growing importance to the overall economy. Cybersecurity vendor CrowdStrike was added to the index during the last rebalancing in June. Super Micro Computer, which competes with Dell in selling servers for artificial intelligence workloads, joined three months earlier.
The median market capitalization of S&P 500 companies is approximately $33.5 billion. Palantir’s market capitalization exceeds $76 billion. The company listed on the New York Stock Exchange in 2020.
The stock closed Monday at $34.60, about 11% below its peak.
—CNBC’s Ari Levy contributed to this report.
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