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What Happened after Twitter Joined the S&P 500 Index?

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Twitter gets more exposure

As Twitter (TWTR) prepares to report its second-quarter results on July 27, it does so with a new arrow in its quiver. Last month, Twitter was added to the widely watched S&P 500 Index. After years of posting losses, Twitter has recently started producing profits. We’re about to find out how the company’s bottom line fared in the second quarter.

For investors, the upside of Twitter being in the S&P 500 Index is that it gives the stock more investor exposure and a potential boost to its stock price. Twitter joined the S&P 500 Index on June 7, and the stock fared better than many of its peers as well as the index during the month.

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Twitter soared after joining the S&P 500 Index

Twitter (TWTR) gained 8.9% in June from the time it joined the S&P 500 Index. Facebook (FB), Alphabet (GOOGL), and Yelp (YELP) were down between 1.6% and 6.5% during that period. The S&P 500 Index fell 2.0% in the period between June 7 and June 29. The chart above shows how Twitter stock traded in the first month after joining the S&P 500 Index.

Twitter and Netflix replaced Monsanto

Twitter joined the S&P 500 Index at the same time that Netflix (NFLX) was added to the S&P 100 Index. Twitter and Netflix replaced Monsanto in these indexes. German pharmaceutical and chemical giant Bayer acquired Monsanto, leading to Monsanto’s shares being delisted and removed from the indexes.

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