Facebook Rises on Speculation Stock May Join S&P 500
Facebook Inc. (FB) advanced the most in two weeks after the stock joined the Nasdaq-100 Index and analysts speculated that it will soon be included in the Standard & Poor’s 500 Index.
Shares of Facebook rose 3.2 percent to $28.46 at 10:50 a.m. in New York, and earlier touched $28.49 for the biggest intraday gain since Nov. 29. Through yesterday, the stock had climbed 56 percent since falling to a record on Sept. 4.
Facebook joined the Nasdaq-100 yesterday, replacing the Indian consulting firm Infosys Ltd. (INFO), a move that may attract buyers for exchange-traded funds and other products linked to the index. There’s a greater than 50 percent chance that Facebook will also be added to the S&P 500 in 2013, according to Victor Anthony, an analyst at Topeka Capital Markets Inc.
Inclusion in the S&P, along with efforts to introduce a search engine and make money from the Instagram photo service, “should all lead to a banner 2013 for Facebook,” Anthony wrote in a research report today.
Through yesterday, the stock was still down 27 percent since Facebook sold shares at $38 apiece in an initial public offering in May.
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