Exciting news in the world of finance as Barclays analysts predict that Block Inc., a financial technology firm led by Jack Dorsey, may be the next addition to the S&P 500 index. The S&P 500’s upcoming quarterly rebalance scheduled for June 7th has sparked speculation about potential new additions to the benchmark index.

Barclays analysts point out that Square Inc. (SQ) became eligible for the S&P 500 following its positive net income in the fourth quarter of 2023. With a solid performance in the first quarter of 2024, including a positive net income of $472 million, SQ stock is seen as a strong contender for inclusion in the index.

While the final decision on the June 7th inclusion is not guaranteed and subject to discretionary criteria set by the S&P, Barclays analysts believe that SQ stock meets the necessary criteria. SQ falls under the ‘Financial Services’ category in the GICS Industry, which could help address sector underweighting in the S&P 500.

Barclays highlights that the financial services industry is currently one of the most underrepresented sectors in the S&P 500, making SQ with its $45 billion market capitalization a likely candidate for inclusion. The analysts also suggest that potential mergers and acquisitions could further enhance SQ’s chances of joining the S&P 500 index.

As the financial world eagerly awaits the S&P 500’s June 7th rebalance, all eyes are on Block Inc. and the possibility of its inclusion in this prestigious benchmark index.