Uber's S&P 500 Inclusion Is Imminent, Says Tesla Analyst, Hints At More Upside For The Stock
Portfolio Pulse from Shanthi Rexaline
Uber Technologies, Inc. (NYSE:UBER) is anticipated to join the S&P 500 Index soon, according to Future Fund Managing Partner Gary Black. Uber's market cap of $107.503 billion makes it the largest company not currently in the index. The company has reported four consecutive quarters of positive GAAP earnings. If included, S&P 500 index funds would need to buy approximately $22 billion of Uber shares. Morgan Stanley maintains an Overweight rating on Uber with a $62 price target, while the average analysts' target is $61.34, indicating a potential 17.4% upside.
November 14, 2023 | 6:21 am
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POSITIVE IMPACT
Uber's potential inclusion in the S&P 500 Index could lead to increased demand for its shares from index funds, possibly driving the stock price higher in the short term.
The anticipation of Uber's inclusion in the S&P 500 Index suggests a positive outlook for the stock as index funds would be required to purchase shares, increasing demand. Historical data from similar events, such as Lululemon's inclusion, show potential for a significant price surge following the announcement.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
SolarEdge Technologies, Inc. (NASDAQ:SEDG) is mentioned as having the smallest market cap in the S&P 500 after a 75% decline this year, which may put it at risk of being replaced in the index.
SolarEdge's mention as the smallest market cap in the S&P 500 and its significant year-to-date decline could indicate a risk of being removed from the index. This potential exclusion could lead to negative sentiment and selling pressure on the stock in the short term.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 50