Apollo Global Management Inc. is set to join the prestigious S&P 500 index, marking a major milestone in the firm’s growth. This move comes alongside Workday Inc.’s inclusion, as the alternative asset manager sees its market value soar.

Apollo’s addition to the S&P 500 is the latest recognition of its growing influence in the financial world. Following an impressive earnings report, where it beat expectations with $1.13 billion in adjusted net income, the company’s stock has surged by more than 25%. This surge has bolstered Apollo’s market value by $21 billion, propelling the asset manager into the ranks of the largest U.S. companies. As a result, Apollo now boasts a market capitalization of $100 billion, positioning it for continued prominence in the industry.

The S&P Dow Jones Indices’ announcement on Friday confirmed that Apollo, along with Workday, will replace Qorvo Inc. and Amentum Holdings Inc. in the widely followed index. These changes will be effective prior to the market opening on December 23.

A Rapid Rise for Apollo Global Management

Apollo’s growth over the past year has been nothing short of remarkable. The company has seen its share price rise substantially, driven by strong earnings and increasing investor confidence. This latest achievement highlights the company’s resilience and its expanding role in the asset management sector.

The rally in Apollo’s stock reflects broader confidence in its financial health and future prospects. Investors have been particularly encouraged by its adjusted net income, which surpassed analysts’ predictions, signaling a strong operational performance.

In addition to its earnings performance, Apollo’s diverse portfolio of investments, including its ownership of IGT (International Game Technology), Everi, and its operations of the Venetian Resort in Las Vegas, has bolstered its standing among top financial firms. These high-profile ventures add to Apollo’s overall market value, showcasing its expansive reach across multiple industries.

S&P 500 Changes: The Bigger Picture

In a significant move, the S&P 500 will see some familiar faces replaced with rising stars. Alongside Apollo, Workday Inc. will also join the index. The two companies will replace Qorvo Inc. and Amentum Holdings, a change that will take place before trading begins on December 23.

The S&P 500 index is often seen as the benchmark for U.S. equities, representing the largest and most influential companies in the country. Being added to this index is seen as a stamp of approval for any company, as it indicates sustained growth and financial stability. For Apollo, this marks a key moment in its history, positioning the company alongside some of the biggest names in business.

Changes like these also reflect a broader trend of market consolidation, where powerful asset managers and financial firms are growing in influence. Blackstone Inc., another alternative asset manager, was added to the S&P 500 earlier, solidifying the shift towards private equity and asset management firms taking center stage in global markets.

What Apollo’s Inclusion Means for Investors

Apollo’s inclusion in the S&P 500 is likely to spark increased interest from institutional investors, who often track the index closely. Being part of such a prestigious index means that Apollo will now be included in numerous mutual funds and exchange-traded funds (ETFs) that mimic the S&P 500, potentially leading to even greater stock demand.

For current investors, this could translate into further gains, as the index’s inclusion often leads to positive price movement. For new investors, the stock’s rise in value and the company’s continued success make it an attractive option for those looking to invest in high-growth asset managers.

However, Apollo’s future growth is not without challenges. While the company’s earnings have been strong, maintaining this momentum in the face of changing market conditions will be key to sustaining investor confidence. Still, with a broad portfolio of investments and a reputation for delivering solid returns, Apollo’s position in the S&P 500 seems secure—for now.