working day Shares rose 9% in prolonged trading on Friday after S&P Dow Jones Indices said the cloud software provider could be added to the S&P 500.
The company, which has a market capitalization of about $70 billion, might be replaced Livestock farming within the index effective December 23, in keeping with a opinion. The S&P 500 has added several more significant technology stocks this yr, including Dell And Palantir.
Workday was founded in 2005 and is predicated in Pleasanton, California. It went public on the New York Stock Exchange in 2012. Five years later, the corporate moved to list on Nasdaq.
In November, Workday reported net income of $193 million on quarterly revenue of $2.16 billion, up 16% from a yr earlier. The company forecast fiscal 2026 revenue growth of 14%. Before fiscal 2022, Workday, which sells human resources and financial software, posted net losses.
To be included within the leading US index, corporations must show profits within the last quarter and the last 4 quarters.
In February, Carl Eschenbach, a former VMware operations executive and Sequoia Capital investor, became sole CEO of Workday after serving as co-CEO with co-founder Aneel Bhusri since late 2022. Workday will release a synthetic intelligence agent for creating and submitting expense reports this yr, and an agent for identifying inefficiencies in business processes will launch in 2025, Eschenbach told analysts on a conference call in November.
Stocks often rally after they are included in a serious index as fund managers should rebalance their portfolios to reflect the changes.
While more technology corporations have been added to the S&P 500, not all of them have proven to be money makers for investors who buy index funds. Server manufacturer Great microphone was added to the S&P 500 in March after the stock surged on demand Nvidia-based servers.
Super Micro's shares peaked shortly after this announcement, but then plummeted in the next months as the corporate didn’t file its financials on time. The stock is down about 60% from its peak, and the corporate said Friday that it had received an extension from Nasdaq to take care of its listing.
REGARD: Carl Eschenbach, co-CEO of Workday, on the impact of AI on the job market in 2024
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