Meet 2 of the Newest Additions to the S&P 500 Index. Their Stocks Have Rocketed 868% and 460% Since Their IPOs, Although Things Could Change in 2025, According to Wall Street.

Core Insights - The S&P 500 will undergo quarterly rebalancing on December 23, which involves dropping and adding stocks to better reflect market capitalization [1] Group 1: Apollo Global Management - Apollo Global Management has seen a stock price increase of 868% since its IPO in March 2011, with over $650 billion in assets under management (AUM) as of the end of 2023 [3] - The company's primary business focuses on credit underwriting and origination, with over $480 billion of AUM allocated to this strategy, which includes corporate fixed income and structured credit [4] - Private credit has become a significant area for Apollo, with total AUM in this sector reaching nearly $598 billion, up over $100 billion year over year [4] - Apollo aims to double its private credit business to $1.2 trillion AUM over the next five years, driven by regulatory changes affecting traditional bank lending [5] - The stock has performed well, increasing 91% this year, but analysts suggest it may be overvalued in the near term, with an average price target indicating a potential downside of about 2.5% [6][7] Group 2: Workday - Workday's stock has increased by 460% since its IPO in October 2012, but only 5.5% this year, underperforming the S&P 500's 28% gain [8] - The company provides a platform for managing human resources and financial operations, with plans to enhance its offerings with generative AI capabilities in 2025 [9] - Workday has faced challenges such as higher costs and increased competition, leading to a revenue growth of only 3.6% in the third fiscal quarter of 2025 [10] - Despite these challenges, Wall Street analysts remain optimistic, with 21 out of 29 ratings being buy, although the average price target suggests only about a 3% upside from current levels [11]