- Cloud software vendor ServiceNow was added to the S&P 500 on Monday, replacing Celgene, which is being acquired.
- ServiceNow has a $50 billion market value, higher than about half the companies in the index.
ServiceNow shares climbed 4% in extended trading on Monday after the cloud software vendor was added to the S&P 500, a move that will likely expand the company's shareholder base to include investors in big index funds.
Since its IPO in 2012, ServiceNow has been on a tear. The stock has climbed more than 1,000% over that stretch, closing on Monday at $266.31, giving the company a market cap of over $50 billion. In its seven years on the public market, it's outperformed Salesforce, which is up 380% in that time, and the S&P 500, which has gained 135%.
ServiceNow's entry into the index comes less than a month after the company named ex-SAP chief Bill McDermott as its new CEO. John Donahoe, who had been ServiceNow's CEO, left to take the helm of Nike.
ServiceNow's technology automates many IT functions and digitizes things like workflow management. The stock is entering the S&P 500 because Celgene is being acquired by Bristol-Myers Squibb. ServiceNow is worth more than about half the companies in the index.