Why AppFolio Stock Jumped on Tuesday

AppFolio (NASDAQ: APPF) stock was beating the market Tuesday morning, trading up by more than 10% as of 11:40 a.m. ET compared to a 0.3% increase in the S 500. This boost added to big recent gains from the software tech specialist. Shares are up by more than 40% so far in 2024, while the wider market has gained about 10%

Tuesday's rally was sparked by news that AppFolio will be joining a new index.

AppFolio stock will soon become a component of the S Mid-Cap 400 Index, according to a late Monday press release. That change will have no impact on the company's growth or earnings prospects, yet it does mean potentially higher demand for the stock over the next week or so.

Source Fool.com