This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Facebook 'Friended' by Nasdaq, to Join Nasdaq 100 (Update 1)

Stocks in this article: FB NDAQ

Updated from 8:21 a.m. EST to provide more context and comment from Nasdaq in the fourth and fifth paragraphs.

NEW YORK ( TheStreet) -- Just seven months after making one of the largest IPO flubs of all time, Wall Street has finally "friended" Facebook (FB). The social networker is set to join the Nasdaq 100 later this month.

In a press release, Nasdaq OMX Group (NDAQ) announced the Menlo Park, Calif.-based Facebook will become a component of three indexes prior to the market opening on Dec. 12. Facebook will join the NASDAQ-100 Index, the NASDAQ-100 Equal Weighted Index, and the NASDAQ-100 Technology Sector Index. Facebook is set to replace Infosys (INFY) in the index.

Facebook, which has a current market cap of almost $30 billion, is the largest technology company not in the Nasdaq-100. The Nasdaq changed the requirements of joining the prestigious index, asking companies to be listed six months before a decision was made. It had previously been one year.

Facebook was the largest tech IPO of all time, raising more than $16 billion in May, but it seemingly went downhill from there. The IPO priced at $38, opened for trading at $42.05, and spent the first day struggling to stay above $38. There were several errors, including those by the Nasdaq, its brokers, and Facebook itself, as delays and overestimated demand hampered the share price.

The stock has not seen $30 since mid-July, having reached a low of $17.55 in early September.

But the social networker has enjoyed a recent strong run, gaining 54.89% over the past three months, as investors reassess the growth prospects of the company. Over the same time frame, the Nasdaq has lost 2.54%.

Facebook's third-quarter earnings were a surprise to Wall Street, as the company beat estimates, helped by its strength in mobile advertising. Overall, Facebook posted adjusted earnings of 12 cents a share on revenue of $1.26 billion, slightly beating Wall Street estimates on the top and bottom line.

Facebook declined to comment for this story.

Shares were rising in premarket trading, up 1.93% to $27.99.

Interested in more on Facebook? See TheStreet Ratings' report card for this stock.

-- Written by Chris Ciaccia in New York

>Contact by Email.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs