S&P Dow Jones Indices said Twilio Inc. will join the S&P 500 before the market opens on Tuesday, October 6. The cloud communications company will replace Warner Bros. Discovery Inc. following its acquisition.
Twilio shares rose 1.6% in after-hours trading. The stock reached $305.95, a nearly five-year high.
The anticipated buying demand from funds that track the S&P 500 contributed to the positive market reaction. Those funds will need to add Twilio to their portfolios.