Gifts for $25 or Less Spotify Wrapped Neuralink Brain Chip Black Hole Burps Light of 1,000 Trillion Suns Stamp Price Increase Streaming Services to Cancel Melatonin Rival Monkeypox Renamed
Want CNET to notify you of price drops and the latest stories?
No, thank you
Accept

Yahoo drops on S&P 500 debut

Shares of Yahoo shed almost 30 points as the company begins its first day of trading as part of the influential Standard & Poor's 500 index.

Shares of Yahoo shed almost 30 points today as the company began its first day of trading as part of the influential Standard & Poor's 500 index.

The shares dropped 8.15 percent, closing down 28.38 at 319.63 on volume of 24.9 million shares.

"It's just people doing profit takingÂ…Since [Yahoo] went to the S&P 500, day traders are basically losing it," said Peggy Ledvina, an analyst at Dain Rauscher Wessels. "You won't see [Yahoo] lose all [its] gains."

Yesterday, shares of Yahoo soared as investors raced to buy a stake in the company before its first trading day as part of the S&P 500. Shares closed up 67.25, or 23.95 percent, at a record 348. More than 66 million shares changed hands.

Yahoo's stock has enjoyed a strong run since last week's announcement that it would be added to the S&P 500. The company, which has a market capitalization of $56 billion, replaces Canada's Laidlaw, the largest school bus company in North America.

Companies that join a large index usually see their share prices rise because index fund managers must buy the stocks to match the index's performance.

Last Friday, the S&P 500 and the tech-heavy Nasdaq composite index closed at record highs. The S&P 500 added 24.26 points, or 1.7 percent, to close at 1,433.3.