Uber's Stock Soars as It Joins the Elite S&P 500 Club!


Uber's Stock Soars as It Joins the Elite S&P 500 Club!
© Getty Images News/Hollie Adams

Uber Technologies Inc. , the renowned ride-hailing company, reached a new 52-week high last week, setting the stage for its much-anticipated debut in the S&P 500 index in Monday's trading. This inclusion is a remarkable turnaround for the San Francisco-based firm, reflecting its growing market influence and financial stability.

A Year of Triumphs for Uber

Uber's journey to the S&P 500 has been marked by significant achievements and a notable recovery from previous challenges.

"Super proud of the Uber team for S&P 500 inclusion," CEO Dara Khosrowshahi expressed on X, a social media platform.

With a market capitalization of about $127 billion, Uber stands as the largest US company not previously in the index, underscoring its impressive growth trajectory.

2023 has been a particularly prosperous year for both Khosrowshahi and Uber. The company reported strong quarterly earnings, record ridership, and its stock has surged more than 150% this year. Regulatory victories in the US and UK further bolstered its position, marking a stark contrast to the difficulties it faced not long ago.

Uber's past challenges included leadership controversies, opposition from cities and taxi unions, and financial losses, with its stock plummeting by about 52% in 2022. The company's addition to the S&P 500, which is rebalanced quarterly and tracked by funds worth trillions of dollars, signifies not just a recovery but a recognition of its expanded influence and market stability.

Beyond Wall Street: Wider Implications of Uber's Inclusion

Uber's entry into the S&P 500 carries implications that extend far beyond Wall Street. Many retirement accounts, including 401(k)s, personal investment portfolios, and IRAs, are tied to funds that track the S&P 500.

With Uber joining the index, these funds and portfolios will automatically purchase its stock, potentially boosting its stock price further. Since the announcement of Uber's addition to the benchmark index on December 4 by the S&P Dow Jones Indices, the company's stock has already seen an approximate 10% gain. Shares are now hovering just below their all-time high, reached nearly two years ago in February 2021.