Alex Karp, CEO of Palantir Technologies, speaks at the World Economic Forum in Davos, Switzerland, on January 18, 2023.
Arnd Wegmann | Reuters
Dell and Palantir Shares of both companies rose about 7% in after-hours trading on Friday after S&P Global announced it would join the S&P 500 U.S. stock index.
Palantir will replace American Airlinesand Dell Is replacing Etsy, according to statement.
This wouldn’t be Dell’s first entry into the index. The computer and server maker was a member of the company from 1996 until 2013, when founder Michael Dell and private equity firm Silver Lake took the company private. Dell went public again in 2018.
super microcomputerThe company, which competes with Dell in selling servers for artificial intelligence workloads, saw a historic rise in its stock price earlier this year, pushing its market value past $50 billion and later joining the S&P 500. Its value has since halved.
After operating as a venture capital-backed startup for more than 15 years, Palantir listed on the New York Stock Exchange in 2020 and began reporting profits in the fourth quarter of 2022. exist Season 2Palantir’s net profit totaled $135.6 million, up from $27.9 million in the same period last year. Annual revenue growth has accelerated for four consecutive quarters.
Palantir’s iconoclastic CEO Alex Karp has a reputation for helping companies and government agencies manage their data. he recently told new york times Palantir is about “uncovering the hidden.”
A company must be profitable in its most recent quarter to join a major index, and the sum of its most recent four quarters must be positive.
“I’m interested in profitability for obvious reasons, but I think we’ll be in a better position as we become eligible to participate in the S&P,” Karp told analysts on a May 2023 conference call. .
Dell has made a profit almost every quarter since 2019. Investors are excited about server sales growth including: NVIDIA A graphics processing unit that can handle artificial intelligence workloads. Dell tell investors Last week, demand for artificial intelligence servers reached $3.2 billion in the quarter ended August 2, a 23% increase from the previous quarter.
Cyber ​​Security Provider mass strike The period is added to the index Previous rebalancing,June.
Shares of companies included in the benchmark typically rise after the announcement, as fund managers tracking the index regularly update their portfolios to reflect the additions.
S&P Global said the additions better reflect high-cap U.S. stocks. The median market capitalization of the companies in the index is approximately $33.5 billion. Palantir’s market capitalization exceeds $67 billion, while Dell’s valuation exceeds $72 billion.
—CNBC’s Ari Levy contributed to this report.
