After market hours on Friday, shares of Apollo Global Management Inc. and Workday Inc., a cloud-based services platform for businesses, went up because S&P Dow Jones Indices said the two companies would be added to the S&P 500 index later this month.
During late trading, Apollo APO +1.21% shares went up about 6%, and Workday WDAY +1.42% shares went up more than 8%.
The two companies will replace Qorvo Inc. QRVO -0.52%, which makes parts for mobile devices and other electronics, and Amentum Holdings Inc. AMTM +0.74% on the S&P 500. Their addition to the benchmark large-cap index SPX +0.25% will happen before trading starts on Dec. 23.
It was said by S&P Dow Jones Indices that the new stocks added to the index “are more representative of the large-cap market space.”
After hours, Qorvo’s stock was down 1.4% and Amentum’s was down 2%.
Workday, a company with a market value of $69.9 billion, was added to the S&P 500 after its stock had a rough time. The price of Workday shares has dropped 3.5% so far this year as of Friday night. But some experts still liked what they saw in the company’s quarterly report last month.
Last month, Will Jellison, an analyst at D.A. Davidson, wrote in a research note that the company was continuing to win new enterprise business and grow through international and AI prospects.
Apollo shares, on the other hand, have gone up more than 90% this year as of Friday’s close. The investment firm, which is worth about $99 billion on the stock market, reported earnings for the third quarter last month. J.P. Morgan analysts said the company “continued to deliver impressive results.”
As the second largest publicly traded U.S.-based asset manager with $696 billion in assets under management, the analysts said in their investment thesis on the company, “We view Apollo as a leading alternative asset manager.”
Analysts said, “Apollo has grown faster than peers in recent years, in part because it was one of the first companies to see the opportunity in forming insurance partnerships to help drive fee-based earnings.”
