Google to be added to S&P 500 Index

Stock up 8.1% after hours

[poster_boy]

[marketwatch.com...]

[Lipik]

Thanks for this info, I was wondering why it went up even 10% after hours...

[Pass the Dutchie]

Historically, stocks added to the S&P 500 average gains of about 8.5% during the 30-day window following the announcement up to the actual inclusion, according to Bear Stearns.

Expected to be added on the 31st March. If shares alreday are up be 8.1% after hours then what do people think will happen to share prices up until the 31st March and the immediate aftermath of joning the S&P 500?

[Lipik]

PdD,

You can count on it that the 8-10% is what it is for this news. On the stockmarket, it is the news that brings it up or down. So there will be no further effect on the 31 March. (well let's hope I'm wrong ;-)

[Marcia]

The decision instantly puts Google -- less than two years after going public --on the shopping list of hundreds of mutual fund managers who run portfolios that track the components of the S&P 500

Wow! Blue Chip in less than 2 years must be some kind of a record, especially for a technology company.

[iblaine]

>Wow! Blue Chip in less than 2 years must be some kind of a record, especially for a technology company.

Totally. This is somewhat cool to have a leading edge dot com stock in the S&P 500...and somewhat scary. Wonder if Google has the highest P/E of all companies on the S&P 500...

[atadams]

You can count on it that the 8-10% is what it is for this news. On the stockmarket, it is the news that brings it up or down. So there will be no further effect on the 31 March. (well let's hope I'm wrong ;-)

I think part of the increase will be due to the fact that index funds will have to aquire GOOG for their portfolios.

[cerebrum]

Congrats Google!

As more advertising dollars shift to Internet, Google will gain strength.

[asp4bunnies]

Has this even been verified? A google employee friend has said this is totally bogus and Google circulated internal memos stating it was an unfounded rumor, but this article seems to report it as ironclad fact.

[rohitj]

Its a fact and you can go to the standard and poors website to check it out. I highly doubt this would've been put on bloomberg and virtually every other major publication if it were a rumor. and if they did make a mistake, they'd immediately retract it.