GameStop Corp(NYSE:GME) stock is buzzing among retail traders on r/WallStreetBets or WSB as it gets ready to join the S&P MidCap 400 index.
What Happened:A post that noted GameStop’s upcoming addition to the S&P MidCap 400 index trended on WSB at press time. The post gathered over 480 comments and was upvoted 7,300 times.
“One more profitable quarter (which ends this saturday), and it's eligible to join the S&P 500,” wrote u/LasVegasWasFun.
Notably, the S&P 500 index is composed of 500 of the largest U.S. publicly traded companies and is considered as a benchmark of U.S. large-cap stocks.
"GME on the S&P 500 would be the best thing to happen this year solely on account of how many people question the fundamentals of the company. That argument is in the dumpster if it makes the S&P 500," noted another user.
Why It Matters:On Tuesday, S&P Dow Jones Indices announced that GameStop will replace Weingarten Realty Investors(NYSE:WRI) in the S&P MidCap 400.
Currently, GameStop is a constituent of the S&P SmallCap600 index. While the S&P MidCap 400 is made up of companies that have a midrange market cap of between $3.3 billion and $11.8 billion, the S&P 600 trackssmall-capcompanies with a market cap between $700 million to $3.2 billion.
Price Action: On Tuesday, GameStop shares closed 2.94% lower in the regular session at $178.54 and fell 1.24% in the after-hours trading to $176.33.