Block shares surged 7% Monday after S&P Global announced the fintech company will join the S&P 500, according to CNBC. The stock climbed after Friday’s announcement as investors moved ahead of index-tracking fund buys. Stephens estimates that passive funds will purchase approximately 101 million Block shares, equivalent to 11 days of the average trading volume. Though Block's shares remain down 8% year-to-date, its $48 billion market cap exceeds the S&P 500 median. Block is trying to rebuild investor trust after inconsistent results from its Cash App unit. The company reported strong adjusted earnings and improved cash flow, despite missing gross profit estimates in the last quarter.
