Match Group Inc (NASDAQ: MTCH) shares jumped more than 10% in after-hours trading on news it will soon be a part of the S&P 500.
The announcement comes only days after CEO Shar Dubey expressed plans of a personal fund aimed at supporting its workers in Texas who were affected by the state’s recently approved law on abortion.
Match Group to replace Perrigo Company
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On September 20th, Match Group will replace Perrigo Company on the benchmark index as the latter has a market cap that is no longer representative of the big cap market space. Perrigo will now be listed on the S&P MidCap 400 index, as per the press release from the S&P Dow Jones Indices on Friday.
Other adjustments to the indices announced today include WW International replacing Team Inc in the S&P SmallCap 600. Also on Friday, Match Group requested Dutch regulators to announce their decision regarding the online dating service company’s complaint against Apple Inc.
In its earnings report for the fiscal second quarter last month, Match Group topped Wall Street estimates despite the COVID-19 crisis hurting the dating scene in prominent markets like Japan and India.
Requirements to list on the S&P 500
Headquartered in Dallas, Match Group owns notable names in the dating niche, including Tinder, Hinge, and OkCupid. Earlier this year in June, Tinder revealed new features catering specifically to Gen Z.
High liquidity and a market cap of at least $13.1 billion is required for a company to list on the S&P 500 index. Match Group, in comparison, is currently valued at $41 billion with a price to earnings ratio of 78.76.
Including the price action in extended trading, shares of the Nasdaq-listed company are still down 4% from the year-to-date high of $172 in February.
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