By Dhirendra Tripathi

Investing.com – Gogo stock (NASDAQ:) surged 14% Wednesday, a day after the company was added to the S&P SmallCap 600 Index.

Stock has so far climbed as high as $22.27 on Wednesday. It’s up 88% in the last year.

SPX FLOW has been replaced by Gogo. Gogo is the biggest provider of broadband connectivity services in business aviation.

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 company guidance, 2022 total revenue was between $380m and $395m, which is a significant increase from the $336 million that the company reported for the previous year.

At midpoint in the guidance range, adjusted earnings before taxes and interest are seen as $155 million. This is due to a plan for an increase in 5G investment.

From 2021 to 2026, the company plans on increasing its annual revenues at an annual compound rate of approximately 15%.