Shares of Palo Alto Networks Inc. rallied in the extended session Friday after S&P Dow Jones said it would include the cybersecurity platform company’s stock in the S&P 500 index.
Palo Alto Networks
shares surged as much as 5% in after-hours trading, following the announcement that Palo Alto Networks will replace Dish Network Corp.
on the S&P 500
The move will happen June 20, following the Juneteenth holiday on June 19, in a quarterly rebalancing of the index.
Palo Alto Networks, which recently reported earnings and sees AI transforming the software industry over the next 12 months, has seen its shares rally 55.7% year to date, resulting in a market cap of $66.44 billion. The S&P 500 has gained 11.5% on the year.
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Dish shares declined nearly 3% after hours after being demoted to a different S&P index. Shares experienced a 16.2% rally in the regular session Friday, following a report that Amazon.com Inc.
is in talks to offer mobile phone service free to Prime members.
Dish will replace skin-care device maker Cutera Inc.
on the S&P MidCap 400 index
S&P said, noting that the changes are to “ensure each index is more representative of its market capitalization range.” Dish shares have fallen 48% this year, resulting in a market cap of $3.89 billion.
After rising 1.1% to close Friday at $17.15, Cutera shares fell more than 5% after hours. At Friday’s close, shares were already down 61.2% year to date as the company has undergone a leadership shake-up, giving the company a market cap of $340 million, according to FactSet data.
Other changes to the S&P’s smaller cap indexes also set other stocks into after hours motion late Friday.
Shares of PetMed Express Inc.
Children’s Place Inc.
and Zumiez Inc.
and LendingTree Inc.
all fell more than 3% late Friday on their scheduled removal from the small-cap index.