Uber Stock Is Racing Higher Monday: What's Driving The Action?

Uber Technologies Inc UBER shares are trading higher Monday after the company was selected to join the S&P 500.

What Happened: After the market close on Friday, it was announced that Uber was added to the S&P 500 Index, replacing Sealed Air Corp. The update became effective before the market open on Monday. 

When a company joins the S&P 500, its stock price usually rises as funds who track the benchmark have to buy shares to stay balanced. 

In order to join the S&P 500, a company must have positive earnings in its most recent quarter, as well as over the last year. Last quarter, Uber reported net income of $221 million and earnings of 10 cents per share. The company has generated over $1 billion in profits over the last four quarters combined. 

Of all the analysts that cover Uber, 26 have Buy ratings and eight have Overweight ratings with an average price target of $57.74, according to Benzinga data. 

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UBER Price Action: Uber shares are up more than 145% since the start of the year. The stock was up 5.58% at $60.56 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Uber.