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By Dhirendra Tripathi
Investing.com – Gogo stock (NASDAQ:GOGO) surged 14% Wednesday, a day after the company was added to the S&P SmallCap 600 Index.
The stock has risen as high as $22.27 so far Wednesday. It’s up 88% in the last year.
Gogo, the world’s largest provider of broadband connectivity services for the business aviation market, replaced SPX FLOW in the index.
Being part of the S&P SmallCap 600 Index means passive investors who manage trillions of dollars will have to include it in their portfolios, as it will now be part of more funds and derivatives benchmarked against the index.
According to the annual guidance given by the company last month, total 2022 revenue is seen between $380 million and $395 million, compared to about $336 million for the year ended Dec. 31.
Adjusted earnings before taxes, interest, depreciation and amortization is seen at $155 million at midpoint of the guidance range, reflecting a planned increase in 5G investments.
The company is also looking to grow its annual revenue at a compound annual rate of about 15% from 2021 through 2026.
