Palantir (NYSE:PLTR) shares surged more than 8% in premarket trading on Monday after S&P Dow Jones Indices said the company will be added to the S&P 500 index, effective prior to the open of trading on Monday, September 23, to coincide with the quarterly rebalance.
The software maker for data analytics will take the place of American Airlines in the S&P 500.
Following the news, which was released Friday, Palantir shares jumped. At the time of writing, they are up 8.24% at $32.82 a share, adding to Friday's 0.56% increase, which saw the stock close the week at $30.33.
Palantir made its New York Stock Exchange debut in 2020, with the company first posting profits in the fourth quarter of 2022.
In the second quarter, Palantir's revenue grew 27% year-over-year and 7% quarter-over-quarter to $678 million, while its net income for the quarter was $135.6 million, up from $27.9 million in the same period a year earlier.
PLTR's annual revenue growth has risen for four quarters in a row. The S&P 500 requires a company to have reported a profit in its latest quarter and have cumulative profit over the four most recent quarters to join the index.
In a conference call in May, Palantir CEO Alex Carp said that his interest in profitability "is for obvious reasons," but he also acknowledged that the company would "be in a much stronger position as it becomes clear that we qualify for participation in S&P."
Elsewhere, Dell Technologies (NYSE:DELL) was also added to the S&P 500. Dell has returned to the index after the company went public again in 2018. It had previously been included between 1996 and 2013. Its stock is up more than 5% premarket on Monday.