Jack Dorsey, co-founder and Chief Executive Officer from Twitter Inc. and Square Inc., will listen to the Bitcoin 2021 conference in Miami, Florida on Friday, June 4, 2021.
Eva Marie Uzcategui | Bloomberg | Getty pictures
block The shares rose by more than 10% on Friday in extended trade Hess.
It is the second change in the benchmark this week after S&P Global has been announced on Monday that the ad-tech company is added to the S&P 500 Synops In a deal that was closed on Thursday.
Hess' departure comes shortly after Chevron Finally, the purchase of the oil producer of 54 billion US dollars, which prevailed against Exxon Mobil in a legal dispute over offshore oil goods in the South American nation Guyana.
According to an explanation from S&P, Block will officially take part in the S&P 500 before the trade opened on July 23. Shares often gather when they are added to a large index because fund managers have to do their portfolios again to reflect the changes.
Most changes to the S&P 500 take place during the quarterly new compensation of the index. In the event of closure of an acquisition, however, a company can be removed from the index and replaced from the schedule. Last week the surveillance software DATADOG took over the place of Juniper Networks in the S&P 500 as part of the quarterly change of the index.
Blocks addition brings further technical weight to an index that has been moving in this direction in recent years, which reflects the market capitalization of the company profits of companies throughout the sector. Block, which has become popular as a square due to the rapid growth of the company's payment connections, has expanded into crypto, lending and other financial services.
Square was founded in 2009 by Jack Dorsey and changed his name to Block in 2021 to emphasize his focus on blockchain technologies.
The block shares have dropped by 14% this year, which affects the wider US market below average. The NASDAQ has increased by more than 8%, while the S&P 500 has increased by 7%. Nevertheless, Block is estimated with a market capitalization of around 45 billion US dollars well above the middle company in the index.
In May, Block reported results in the first quarter that missed Wall Street on Thursday and published a disappointing view, which led to a fall of the share price. The forecast of Block for the second quarter and the whole year was reflected in the challenging economic conditions, which President Donald Trump followed comprehensive tariff announcements.
“We realize that we work in a more dynamic macro environment, and we have therefore reflected a more cautious attitude towards the macro outlook for our instructions for the rest of the year,” wrote the company in its quarterly report.
After the end of the regular trade on August 7, the company should report results in the second quarter.
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