"The S&P 500 large-cap stock index undergoes quarterly rebalances to reflect evolving market conditions. Managed by S&P Dow Jones Indices, the process involves evaluating companies based on criteria like market capitalization, liquidity, profitability, and sector representation. Additions and deletions ensure the index captures the top 500 performers, with changes announced after market close and effective before trading opens on the specified date."
"This week, the committee revealed its latest adjustments that will take effect on Dec. 22. Among the moves, Carvana ( ) will be one of three companies joining the index, an inclusion that caps a stunning turnaround: its shares have nearly doubled in 2025 and surged more than 5,000% over the past three years, pushing its market cap to nearly $87 billion."
"From Penny Stock Peril to Index Darling Carvana's trajectory has been wild. In late 2022, amid a post-pandemic inventory glut and rising interest rates, the online used-car retailer teetered on bankruptcy. Shares plummeted below $4 - penny stock territory - erasing billions in market value and prompting debt restructuring talks. Three years later, Carvana has overhauled its operations and showcases a leaner model."
S&P Dow Jones Indices conducts quarterly S&P 500 rebalances using criteria such as market capitalization, liquidity, profitability, and sector representation to maintain the top 500 companies. The committee announced changes effective Dec. 22 that add three firms, including Carvana. Carvana's stock has nearly doubled in 2025 and climbed over 5,000% in three years, raising its market cap to about $87 billion. The company recovered from near-bankruptcy in late 2022 through aggressive cost cuts, restructuring and operational overhaul, reaching positive adjusted EBITDA by mid-2023 and achieving a 43% rise in vehicle sales in 2025.
Read at 24/7 Wall St.
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