GoDaddy Stock (NYSE:GDDY) Set to Join S&P 500 After 91% Growth Over 12 Months

GoDaddy stock (NYSE:GDDY) trades down 1.53% today, as news of S&P 500 index inclusion has a cooler effect on the share price than other names set to join the exclusive group.

The well-known internet domain registrar and web hosting company, is poised for a significant development in its stock market journey as from the close on June 21, 2024, GoDaddy will be officially included in the S&P 500 index, as announced by the S&P Dow Jones Indices.

The incorporation of GoDaddy into the S&P 500 is part of a routine quarterly rebalance undertaken by the index to keep it representative of the US stock market. It is notable that the entrance of GoDaddy will be accompanied by the removal of Robert Half, Comerica, and Illumina from the index.

Adding to the significance of GoDaddy's addition to the S&P 500 is the simultaneous entrance of other notable companies, specifically KKR & Co. (NYSE: KKR) and cybersecurity firm CrowdStrike (NASDAQ: CRWD). This grouping represents a broader trend of tech and internet-focused companies gaining prominence in the S&P 500, reflecting the evolving composition of the American economy.

The market has responded well to the additions, with Crowdstrike shares adding 14.31%, and KKR up 7.74% over the last 5 days. Over the same timeframe GDDY stock has seen a relatively meagre rise of 0.54%.

Over the past 12 months, GoDaddy’s stock has already demonstrated impressive growth, with a 91.10% increase potentially reason for the more subdued reaction. There is strong sentiment in the stock, and robust investor confidence in the company's performance and prospects seems to remain firm.

As the morning of June 24 approaches, when GoDaddy will formally join the S&P 500, market participants and investors will be monitoring GDDY stock for any further upwards movement. The inclusion often leads to increased demand for a stock since it becomes a mandatory holding for funds that track the index, potentially generating additional trading volumes and positive price action.

Investors can see this moment as an affirmation of GoDaddy’s growth and its recognised stability, which has now earned it a place among the largest and most influential companies within the market.