Airbnb and Blackstone: A New Chapter in the S&P 500

S&P Dow Jones Indices has revealed significant changes to its indices, sparking notable shifts in the stock market. Blackstone Inc., the investment giant, and Airbnb Inc., the vacation-home rental platform, are set to become part of the S&P 500 index later this month. This announcement sent their stock prices soaring in after-hours trading on Friday.

The effective date for this change is Monday, September 18th, as part of a broader effort by S&P Dow Jones Indices to make each index better align with its market-capitalization range.

Airbnb, currently valued at $83.98 billion, has experienced an impressive 64.7% surge in its stock price this year. Meanwhile, Blackstone, worth $129.29 billion, has seen its stock value rise by 43.6% year-to-date.

Following the news, both Airbnb and Blackstone enjoyed significant gains, with their stock prices jumping 5.7% and 4.8%, respectively, in after-hours trading.

In this transition, Lincoln National Corp. and Newell Brands Inc. will exit the S&P 500 index and join the S&P SmallCap 600.

Blackstone celebrated a remarkable milestone in July, proudly announcing that it had reached $1 trillion in assets under management, driven by a growth trajectory that outpaced its peers in the private equity sector.

Airbnb, on the other hand, has been catering to travelers seeking longer stays and larger accommodations in upscale areas, demonstrating resilience in the travel industry despite last year’s inflationary challenges. The company’s strong second-quarter results and impressive third-quarter sales forecast exceeded the expectations of Wall Street.

In a separate development, S&P 500 member Deere & Co. is set to replace Walgreens Boots Alliance Inc. in the S&P 100, with this change also taking effect on September 18th. S&P Dow Jones Indices clarified that Walgreens is no longer representative of the megacap market segment, although it will remain in the S&P 500.

Following this announcement, Deere’s stock experienced a minor 0.2% decline in after-hours trading, while Walgreens’ stock saw a 0.4% increase.