Stock gets a lift after index announces its inclusion.
The S&P Dow Jones Indices announced Friday afternoon that domain name company GoDaddy (NYSE: GDDY) will join the S&P 500 index.
Shares in GoDaddy (NYSE: GDDY) jumped in after-hours trading Friday because index funds will need to add the stock to their portfolios.
GoDaddy will replace genetic sequencing company Illumina Inc (NASDAQ: ILMN), and Illumina will take GoDaddy’s place on the S&P MidCap 400.
The move will be effective before trading opens on June 24.
S&P is also adding Crowdstrike and KKR to the S&P 500 index at the same time. They will replace Robert Half Inc. (NYSE: RHI) and Comerica Inc. (NYSE: CMA), respectively.
Shareholders will be happy, but customers and domain investors will continue to pay higher prices.