Facebook stock likely to get boost from inclusion in Nasdaq 100
Social-networking company's stock will be added to stock market's collection of largest companies on December 12.
Facebook's stock may be getting another boost soon, thanks to Nasdaq.
The social-networking company is set to replace Infosys on the Nasdaq 100, the collection of the largest 100 nonfinancial companies trading on the stock exchange. The company will be added to the index on December 12, according to CNBC, roughly seven months after its difficult IPO.
In addition to being an apparent nod toward the company's growing influence in the tech community, the move is also expected to lead to a stock price uptick as index fund managers snap up the stock to ensure that their fund reflects the makeup of the Nasdaq 100.
A Facebook representative declined to comment on the move.
After going public in May at $38 a share, the company's stock was stuck on a largely downward trajectory, trading below $18 in early September. Since early November, the shares have experienced revived interest from investors, closing today up 42 cents at $27.46.
The stock got a boost in late October when the company reported that third-quarter earnings had come in slightly above Wall Street's estimates and that 14 percent of its ad revenue was now coming from mobile devices.