×
You will be redirected back to your article in seconds

Twitter Shares Surge to Three-Year Highs After Stock Set to Join S&P 500

Twitter has been promoted to one of Wall Street’s major leagues, and investors are flocking to the stock.

The social-networking company’s stock is being added to the S&P 500 index, marking a coming-of-age moment for Twitter. In addition, Netflix is being elevated to the S&P 100 index of large-cap companies.

On the news, Twitter shares were up 4% in premarket trading, after closing at a three-year-high $37.88 per share Monday. The stock is up 55% year to date, after Twitter posted two straight quarters of net profit (for Q4 2017 and Q1 2018) — the first in its 12-year history. S&P Dow Jones Indices announced the changes after market close Monday. [UPDATE: Twitter shares closed Tuesday up 5.1%, to $39.80 per share. The stock’s all-time high closing price was $73.31 per share on Dec. 26, 2013, less than two months after its IPO.]

Twitter’s entree into the S&P 500 isn’t just symbolic: The index, weighted by market capitalization, is widely used by financial services firms to offer funds based on the S&P 500. Twitter’s market cap currently stands at more than $28 billion.

Meanwhile, Twitter this week restructured its content-partnerships organization, shifting to a regional management structure rather than the previous one based on categories like news, sports and live video. The company positioned the move as a way to “streamline” the group. Among the changes, Twitter disbanded its live-video business unit and is merging the team into the regional structure.

On the S&P indices, Twitter and Netflix are replacing pharmaceutical giant Monsanto, which is being acquired by Bayer in a $63 billion deal. The changes to the respective S&P indices are set to go into effect on Thursday, June 7.

Netflix shares, also at record highs, rose 0.2% in premarket trading Tuesday. The stream-video company is currently the world’s most valuable media company in terms of market capitalization, currently at more than $157 billion, having surpassed Disney’s market cap on May 25.

More Biz

  • Phil McIntyre Steps Down as Roc

    Phil McIntyre Steps Down From Roc Nation Management, but Remains Affiliated With Company

    Phil McIntyre has stepped down as president of Roc Nation Management, but his PhilyMack management company remains affiliated with Roc, a source close to the situation tells Variety. PhilyMack, which McIntyre founded in 2006, partnered with Roc Nation in 2015. The source stressed that McIntyre’s role at Roc Nation Management  — whose clients include Rihanna, [...]

  • Harvey Weinstein Trial

    Ben Brafman Drops Out of Harvey Weinstein Rape Case

    Harvey Weinstein has officially parted ways with defense attorney Ben Brafman, releasing a joint statement Thursday announcing the move. Weinstein had clashed with his defense attorney over strategy in his rape and sexual assault case. The pair issued a statement saying their parting was amicable, and that Brafman would cooperate fully with Weinstein’s new attorneys. [...]

  • Netflix - Apple TV

    Netflix Turns in Record Q4 Subscriber Gains, Price Increase Weighs on U.S. Forecast

    Netflix is beating Wall Street expectations for international subscriber growth — but its recently announced price increase in the U.S. may have put a damper on its momentum in the States. For the fourth quarter of 2018, Netflix reported 1.53 million paid net adds in the U.S. and 7.31 million internationally, to end the year [...]

  • Heather Parry Live Nation

    Live Nation Investigation of Heather Parry Also Targets Leakers (EXCLUSIVE)

    Over the past two weeks, the law firm of Paul Hastings LLP has been probing allegations reported by Variety last month that Heather Parry, the head of Live Nation Productions, had verbally abused employees and used offensive language in the workplace. But the lead investigator, Elena Baca, seems to be just as interested in uncovering [...]

  • Leslie Moonves

    Leslie Moonves to Pursue Arbitration for His $120 Million Severance From CBS

    Former CBS Corp. chairman-CEO Leslie Moonves will pursue an arbitration claim to fight CBS for the $120 million severance that he was denied last month when the company’s board of directors determined he was fired for cause. Moonves was ousted in September after multiple women came forward with allegations of sexual misconduct against the longtime [...]

  • A view of the SK Telecom

    Korean OTT Players, SK Telecom Join Forces to Compete Against Netflix

    South Korea’s three major broadcasters KBS, MBC and SBS have joined forces with the country’s leading telecom firm, SK Telecom, to launch a new video streaming platform. The move is regarded as a defensive reaction against the growing influence of foreign competitors, lead by Netflix. The broadcasters already jointly own Pooq, with MBC and SBS [...]

  • David Lubliner Moves to UTA From

    Veteran WME Agent David Lubliner to Join UTA

    William Morris Endeavor agent David Lubliner is departing the company for a post at United Talent Agency, individuals familiar with the move told Variety. The parting of ways was amicable, the insiders added. Lubliner was a veteran in WME’s motion picture literary department. Rumors of his exit had been floating since Hollywood reopened for the new [...]

More From Our Brands

Access exclusive content