Brian Armstrong, CEO of Coinbase, speaking on CNBC’s Squawk Box outside the World Economic Forum in Davos, Switzerland on Jan. twenty first, 2025.
Gerry Miller | CNBC
Coinbase is joining the S&P 500, replacing Discover Financial Services within the benchmark index, in keeping with a release on Monday. Shares of the crypto exchange jumped 8% in prolonged trading.
The change will take effect before trading on May 19. Discover is within the strategy of being acquired by Capital One Financial.
Since going public through a direct listing in 2021, Coinbase has develop into an even bigger a part of the U.S. economic system, with bitcoin soaring in value and huge institutions gaining regulatory approval to create spot bitcoin exchange-traded funds.
Nevertheless, Coinbase has been a very volatile stock and is trading well below its peak from late 2021. The shares closed on Monday at $207.22, giving the corporate a market cap of $53 billion. At its high, the stock traded at over $357.
Stocks added to the S&P 500 often rise in value because funds that track the S&P 500 will add it to their portfolios.
The index, which is heavily weighted towards tech due to the massive market caps of the industry’s heavyweights, continues so as to add corporations from across the sector. In September, Dell and defense software provider Palantir were added to the S&P 500, following artificial intelligence server maker Super Micro Computer and security software vendor CrowdStrike earlier last yr.
To hitch the S&P 500, an organization will need to have reported a profit in its latest quarter and have cumulative profit over the 4 most up-to-date quarters.
Coinbase last week reported net income of $65.6 million, or 24 cents a share, down from $1.18 billion, or $4.40 a share a yr earlier. Revenue rose 24% to $2.03 billion from $1.64 billion a yr ago.
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