Uber has redefined the ride-sharing and delivery industries, yet the company is still not part of the S&P 500 Index, despite having a huge market capitalization above $60 billion.

Although Uber is larger than most companies in the benchmark index, consistent profitability has prevented Uber from satisfying the eligibility requirements for inclusion in the S&P 500.

After Uber recently reported their first positive earnings report, the company is closing in on the conditions necessary for the company to be added to the most tracked index globally.

A new index inclusion for a company of Uber’s size is rare and can cause a significant boost to the company’s stock price for no fundamental reasons. History has proven that markets are not always efficient, and a potential anomaly may lurk in the near future for Uber Technologies.

Uber has recently shown that the business can indeed generate positive operating income after posting record revenues for the last quarter of 2022.

Uber Shifts Focus From Growth to Profit

This result comes after years of burning through cash, as the company sacrificed near-term profits in exchange for building scale and market share.

The recent shift in Uber’s strategy has prioritized profits and long-term returns for investors instead of subsidizing ride incentives and investing in a larger workforce.

With a new focus on an era of profitability, Uber’s sizeable valuation will open new doors to be included in several of the major market indices for the first time, most notably the S&P 500. Uber’s pending inclusion may lead the company’s stock price to soar to new heights.

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