On Friday, Dec. 1, Uber Technologies (NYSE: UBER) received some exciting news: Its stock will join the benchmark S 500 index at the commencement of trading on Dec. 18. It's a major achievement because admission comes with strict criteria:

But ticking all the boxes doesn't guarantee admission. The company must be selected by the U.S. Index Committee, which reviews the S 500 and its components periodically. It takes a few other things into account, including sector weighting -- the S&P 500 is a diversified index, so the committee wouldn't nominate 400 stocks from the technology sector alone, for example.

Uber's management team has worked hard to swing the company into profitability while maintaining strong growth in its ride-hailing and food-delivery businesses. Below, I'll explain why its stock is a buy now and what joining the S 500 could mean for investors.

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Source Fool.com