George Kurtz, CEO of CrowdStrike
Patrick T. Fallon | Bloomberg | Getty Images
CrowdStrike shares jumped 7% on Monday after an announcement that the cybersecurity software vendor was joining the S&P 500, replacing financial firm Comerica.
S&P Dow Jones Indices said in a statement late Friday that CrowdStrike was being added to the benchmark index, along with global investment firm KKR and web domain seller GoDaddy, which are taking the place of Robert Half and Illumina, respectively. The changes will go into effect June 24.
Shares of companies added to the benchmark often rally after the announcement because fund managers who track the index regularly update their portfolios to mirror the additions. Evercore analysts said in a note to clients on Monday that its “trading desk expects indexers to buy ~30mn shares” in CrowdStrike.
Security ETFs gained on Monday, with the First Trust Nasdaq Cybersecurity ETF and Amplify Cybersecurity ETF — ticker symbol “HACK” — both climbing 1.5%.
CrowdStrike has been profitable in the five most recent quarters, meeting the requirement for inclusion in the S&P 500. With a market cap of over $90 billion, CrowdStrike has more than double the valuation of the median S&P 500 company.
“This incredible milestone is a testament to the hard work, dedication, and belief our team, customers, and partners have shown since our inception in 2011,” CEO George Kurtz said in a LinkedIn post over the weekend.
CrowdStrike’s surge on Monday pushed the stock to a record close and brought its gains for the year to 46% after a 142% jump in 2023.
Earlier this month, CrowdStrike reported a 33% increase in revenue from a year earlier to $921 million.
WATCH: CrowdStrike CEO George Kurtz goes one-on-one with Jim Cramer