CrowdStrike rallies to record on cybersecurity company's inclusion in S&P 500

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CrowdStrike is joining the S&P 500, replacing Comerica, effective June 24.

Shares of companies added to the index often rally on the news because fund managers who track the benchmark purchase the stock.shares jumped as much as 10% on Monday after an announcement that the cybersecurity software vendor was joining the S&P 500, replacing financial firmShares 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.

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 aCrowdStrike's surge on Monday pushed the stock to a record, and brought its gains for the year to 49% after a 143% jump in 2023.Crime and Courts

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