Coinbase is pulled in the heart of traditional finance. On Monday, the company was chosen to join the S&P 500, replacing Discover Financial Services in the index. And its mission is to take over Wall Street.
The change will be put online before the opening bell on May 19, and the move immediately sparked a leap of 8% of the prolonged exchanges for the actions of the Crypto Exchange. The announcement came while Discover is acquired by Capital One Financial.
It's the last addition to the reference index, which is based strongly on technological companies and includes names with some of the largest stock capitals on the planet. Since it became a public in 2021 via a direct list, Coinbase has become more involved in the American financial system.
This increase came with the climbing of Bitcoin's value, and several large institutions are now authorized to launch ETF Bitcoin Spot. The range of Coinbase has increased, but volatility also surrounding its stock.
Coinbase wins its place with new profits
To enter the S&P 500, a company must show its profits during its last quarter and its positive cumulative benefit during the last four quarters. Coinbase checked this box in its last gains. The company posted a net profit of $ 65.6 million, or 24 hundred per share, against $ 1.18 billion, or $ 4.40 per share, in the same quarter last year. Even if this drop was clear, the company was still earning money and it opened the door.
Income increased by 24%, landing to $ 2.03 billion, compared to $ 1.64 billion a year ago. Coinbase shares closed $ 207.22 on Monday, which gives it a market value of $ 53 billion. It was far down compared to the $ 357 summit that he struck at the end of 2021, but it is still large enough to attract the attention of index fund managers who have no choice but to buy it. This is the reality for any company that landed on the S&P 500 – the indexing funds after the reference are forced to rebalance and include the new name. This usually adds demand.
The S&P adds Coinbase at a time when it is already developing with names in the world of wider technology. In September, Dell and Palantir were brought. Before them, Super Micro Computer and Crowdstrike joined the list.
Traders push the market through key barriers
Oh but the market was hard on Monday. The S&P 500 jumped 3.3% and exceeded its mobile average at 200 days, a technical line which had been treated as a ceiling by many traders. This did not prevent the purchase. The stocks continued to climb through the day without restoring momentum.
This includes names like Tesla, which won almost 7%, Apple, which increased by 6%, and Nvidia, which increased by 5%. Companies with a heavy link with Chinese supply chains have also increased – the best purchase increased by 6%, Dell won almost 8%and Amazon added more than 8%.
The momentum has not only raised a few stocks. The entire NASDAQ index is now less than 1% of its positive turn for the year. If he erases the level of 5,881.63, he closed on December 31, he will be officially back in the green.
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