Will Facebook Addition to the SP500 Hurt Its Stock

Ever since Facebook (NASDAQ: FB) went public last year, investors and analysts have speculated about if and when it would find its way onto the S&P 500 (INDEX: ^GSPC), the most widely tracked equity index in the world.

The answer came last Thursday, with an announcement from the index committee that the time has come. Starting Dec. 20, the $130-billion company will officially be listed on the S&P 500. In the video below, Motley Fool contributor John Maxfield discusses his analysis of other recent additions to the index and what it suggests about Facebook's chances for outperformance going forward.

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