Published on: December 6, 2024, 10:42 AM.
Last updated on: December 6, 2024, 10:42 AM.
Apollo Global Management (NYSE: APO), the operator of the Venetian casino hotel and convention center on the Las Vegas Strip, is set to join the prestigious S&P 500 index.
The announcement was made by index provider S&P Dow Jones Indices after the US market closed, leading to a surge in Apollo’s stock price during after-hours trading as it was added to the widely followed benchmark domestic equity index.
Apollo Global Management Inc. and Workday Inc. (NASDAQ: WDAY) will be replacing Qorvo Inc. (NASDAQ: QRVO) and Amentum Holdings Inc. (NYSE: AMTM) in the S&P 500, respectively,” according to a statement from S&P. “Qorvo and Amentum Holdings will replace Kelly Services Inc. (NASDAQ: KELYA) and Service Properties Trust (NASDAQ: SVC) in the S&P SmallCap 600, respectively.
Changes to the S&P 500, S&P MidCap 400, and S&P SmallCap 600 indexes will take effect at the opening of US markets on December 23, with Apollo being the only gaming-related entity included or excluded from these indices.
Apollo’s Impact on the Gaming Industry
Having returned to the Las Vegas Strip over three years ago, Apollo has overseen the operations of the Venetian following a major acquisition. The private equity firm has made substantial investments in the property, enhancing its performance and financial outlook significantly.
Under Apollo’s stewardship, the Venetian has seen improvements in various aspects, including the addition of new dining options, a modern sportsbook, and poker room. The company has also committed substantial funds to further develop the integrated resort.
Apollo’s current success contrasts with its previous experience in the gaming industry, where a leveraged buyout of a different gaming company led to bankruptcy. However, the firm is now actively expanding its gaming portfolio through acquisitions and investments.
Significance of S&P 500 Inclusion
By joining the S&P 500, Apollo becomes one of the few private equity firms included in the index, alongside Blackstone and KKR. Inclusion in the S&P 500 is significant for any company as it attracts new investors and increases visibility.
Apollo’s addition to the index also means that various funds tracking the S&P 500 will need to acquire the stock, leading to increased demand and potentially driving up the share price.