This Day On The Street
Continue to site
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

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

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 - Get Report). The social networker is set to join the Nasdaq 100 later this month.

In a press release, Nasdaq OMX Group (NDAQ - Get Report) 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.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FB $117.64 0.18%
NDAQ $62.77 0.80%
AAPL $94.13 -1.10%
GOOG $697.10 0.68%
TSLA $223.39 -3.80%


Chart of I:DJI
DOW 17,659.34 -91.57 -0.52%
S&P 500 2,048.00 -15.37 -0.74%
NASDAQ 4,718.88 -44.3440 -0.93%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs