Will Facebook's Addition to the S&P 500 Hurt Its Stock?


Ever since Facebook went public last year, investors and analysts have speculated about if and when it would find its way onto the S&P 500 , the most widely tracked equity index in the world.

The answer came last Thursday with an announcement from the index committee that the time has come. Starting Dec. 20, the $130 billion company will officially be listed on the S&P 500. In the video below, Motley Fool contributor John Maxfield discusses other recent additions to the index and what it suggests about Facebook's chances for outperformance going forward.

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The article Will Facebook's Addition to the S&P 500 Hurt Its Stock? originally appeared on Fool.com.

John Maxfield has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Originally published