Close-up of the Workday logo at its headquarters in Pleasanton, California.
Smith Collection | Photos from the archive | Getty Images
working day shares rose 9% in extended trading Friday after S&P Dow Jones Indices said the cloud software vendor will be added to the S&P 500.
It will be replaced by a company with a market capitalization of about $70 billion Cattle farms in the index effective on December 23, a statement. The S&P 500 has added several more outstanding technology stocks this year, among others Dell and palantir.
Workday, founded in 2005 and based in Pleasanton, California, went public in 2012 on the New York Stock Exchange. Five years later, the company switched to Nasdaq.
In November, Labor Day It reported $193 million in net income of $2.16 billion for the quarter, up 16% from a year earlier. The company called for 14% revenue growth in fiscal 2026. Prior to fiscal year 2022, Workday, which sells human resources and financial software, posted a net loss.
In order to be included in the prominent US index, companies must show profits for the last quarter, along with profits for the last four quarters.
In February, Carl Eschenbach, former VMware chief operating officer and Sequoia Capital investor, became Workday’s sole CEO after serving as co-CEO through the end of 2022, along with co-founder Aneel Bhusri. Workday will release an artificial intelligence agent this year to generate and send expense reports, and an agent to identify inefficiencies in business processes will arrive in 2025, Eschenbach told analysts on a November conference call.
Stocks often rise when they are added to a major index because fund managers must rebalance their portfolios to reflect the changes.
While more tech companies have joined the S&P 500, they haven’t proven to be moneymakers for investors who buy index funds. The creator of the server Super Micro was add to the S&P 500 in March after a big rally in stocks, driven by demand Nvidia-based servers.
Super Micro shares soared after the announcement, but fell in the months that followed as the company failed to file its financials on time. The stock is about 60% off, the company said on Friday he received an extension to maintain its listing from Nasdaq.
SEE: Workday CEO Carl Eschenbach on the Impact of AI on the Labor Market Landscape in 2024
