By Mackenzie Tatananni and Anita Hamilton

DoorDash, World Wrestling Entertainment owner TKO Group Holdings, and home goods company Williams-Sonoma were added to the S&P 500 as part of a quarterly reshuffling of the index. Borgwarner, Teleflex, Celanese, and FMC were removed. The changes will take effect on March 24.

This is a breaking story. Check back for updates.

S&P Dow Jones Indices makes additions and deletions to the index, which tracks the 500 largest publicly listed companies by market capitalization, on a quarterly basis. The changes will take effect after the close on March 21; they're generally announced two weeks in advance.

Barclays analysts have identified seven companies within their coverage as potential candidates for S&P 500 inclusion. The largest is Interactive Brokers, a Connecticut-based brokerage firm with a market capitalization of $80.7 billion.

Coinbase and Ares Management are next on the list, with $54.4 billion and $50 billion market caps, respectively. Other possible candidates include Robinhood, LPL Financial, Blue Owl Capital, and Tradeweb Markets.

Though not mentioned in the Barclays report, investors have their eyes on AppLovin. With a market cap of $88.3 billion, the mobile technology company is the largest of all candidates that meet the S&P Dow Jones Indices criteria, according to Dow Jones Market Data. Another strong contender is DoorDash, with a market cap of $75.7 billion.

As of Thursday's close, FMC, Celanese, and Caesars Entertainment were among the lowest in market cap in the S&P 500, according to Dow Jones Market Data, putting them at risk of removal.

S&P Global announced the addition of Apollo Global Management and Workday to the S&P 500 index last quarter, replacing Qorvo and Amentum Holdings, which were moved to the S&P SmallCap 600.

A company must meet a lengthy list of criteria to be considered. For starters, it must be U.S.-domiciled and listed on one of 10 eligible U.S. exchanges, excluding the OTC Bulletin Board and pink sheets.

Moreover, its market cap must be greater than $14.5 billion, with the primary listing's float greater than 50% of the market cap. The company's sum of GAAP net income over the four most recent consecutive quarters must also be positive, as well as the most recent quarter.

Analysts led by Benjamin Budish noted that stocks selected for index inclusion typically see gains of 7% or more in the period ahead of their first day of trading in the index, "making Friday's event a potential catalyst for the stocks' activity."

However, the stocks sell off by an average of 1.3% in the first week following index inclusion and are down around 1% in the following four weeks, the analysts wrote.

In addition, stocks selected for addition have sold off on average by 16 base points from the announcement to the close of the rebalance day, "and have also seen slightly negative returns in the first day and week following the rebalance," the analysts wrote.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com and Anita Hamilton at anita.hamilton@barrons.com

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March 07, 2025 17:31 ET (22:31 GMT)

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