How New S&P 500 Companies Performed in 2024
In 2024, a number of companies were added to the prestigious S&P 500 index. Here’s a summary of their performance through the year, including price changes as of December 31, 2024:
Key Takeaways:
- Best-performing company: Palantir Technologies saw a spectacular 340% price increase, making it the top performer. The company’s growth was fueled by heightened demand for its AI and data analytics software, including a large $400 million contract with the U.S. military.
- Worst-performing company: Super Micro Computer faced significant challenges in 2024, including regulatory issues that contributed to a staggering 70% drop in share price. Speculation has arisen about its potential delisting from the S&P 500.
Performance Breakdown of New S&P 500 Companies (2024):
| Company | Sector | Date Joined | Price Change (%) |
|---|---|---|---|
| Super Micro | 🤖 Tech | March 18, 2024 | -70% |
| Deckers | 🛍️ Consumer | March 18, 2024 | +34% |
| KKR | 🏦 Financials | June 24, 2024 | +38% |
| Crowdstrike | 🤖 Tech | June 24, 2024 | -9% |
| GoDaddy | 🤖 Tech | June 24, 2024 | +43% |
| Palantir | 🤖 Tech | Sept. 23, 2024 | +99% |
| Dell | 🤖 Tech | Sept. 23, 2024 | -2% |
| Erie Insurance | 🏦 Financials | Sept. 23, 2024 | -23% |
| Texas Pacific Land | 🛢️ Energy | Nov. 26, 2024 | -30% |
| Apollo Global Management | 🏦 Financials | Dec. 23, 2024 | -4% |
| Workday | 🤖 Tech | Dec. 23, 2024 | -3% |
S&P 500 Inclusion Benefits:
Being added to the S&P 500 offers several advantages to companies:
- Increased visibility: Being part of the S&P 500 can enhance investor recognition, leading to increased attention from institutional investors and the media.
- Greater demand for shares: Companies included in the index see increased demand as mutual funds and ETFs tracking the S&P 500 are required to purchase shares in these companies. The world’s three largest S&P 500 ETFs, which have combined assets of nearly $1.8 trillion, help drive this demand.
Summary:
While 2024 has seen both spectacular gains and disappointing losses for the newly added S&P 500 companies, the index inclusion remains a significant milestone that can offer companies broader exposure, greater investor demand, and easier access to capital. As we move forward, it will be interesting to track the longer-term impacts on these companies, particularly those like Palantir, which have seen explosive growth.
