Jack Dorsey, co-founder and chief executive officer of Twitter Inc. and Square Inc., listens to the Bitcoin 2021 conference in Miami, Florida, Friday, June 4, 2021.
Eva Marie Uzcategui | Bloomberg | Getty images
Block Friday, the shares jumped more than 10% in prolonged exchanges, while the company Fintech is ready to join the S&P 500, by replacing Up.
This is the second change to the reference this week, after S&P Global announced on Monday that the company Ad-Tech, the commerce would be added to the S&P 500. Trade Desk would take the place of the Ansys software manufacturers, which was acquired by Synopsys In an agreement that concluded Thursday.
Hess’s departure comes just after Chevron Completed its $ 54 billion purchase from the oil producer, prevailing against Exxon Mobil in a legal dispute over offshore petroleum assets in the South American country in Guyana.
Block will officially join the S&P 500 before the opening of the trade on July 23, according to a press release from S&P. Actions often come together when added to a major index, as fund managers must rebalance their portfolios to reflect changes.
Most changes to the S&P 500 take place during the quarterly rebalancing of the index. However, in the case of the closing of an acquisition, a company can be removed from the index and replaced by the calendar. Last week, the Datadog surveillance software company took the place of Juniper Networks in the S&P 500 as part of the quarterly change of the index.
The addition of Block brings new technology to an index that changes regularly in this direction in recent years, reflecting the market capitalization gains of companies in the sector. Block, which has gained popularity as a square due to the rapid growth of the company’s payment terminals, extended to the crypto, to loans and other financial services.
Founded by Jack Dorsey in 2009, Square changed its name into block in 2021 to highlight its accent on blockchain technologies.
Block shares are down 14% this year, underperforming the wider American market. The NASDAQ is up more than 8%, while the S&P 500 won 7%. However, with a market capitalization of around $ 45 billion, the block is evaluated well above the median company of the index.
In May, Block announced on Thursday the results of the first quarter that missed Wall Street’s expectations and expressed a disappointing perspective, leading to a dive in the course of action. Block forecasts for the second quarter and the full year reflected difficult economic conditions that followed the radical price announcements by President Donald Trump.
“We recognize that we operate in a more dynamic macro environment, so we have reflected a more cautious position on macro perspectives in our advice for the rest of the year,” wrote the company in its quarterly report.
The company should declare the results of the second quarter after the closing of regular exchanges on August 7.
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