Overview
- S&P Dow Jones Indices said Veeva will enter the S&P 500 before trading on May 7, replacing Coterra Energy as it gets acquired by Devon Energy.
- Veeva shares jumped about 9% to 10% in extended trading after the inclusion was announced.
- Index funds and ETFs that mirror the S&P 500 will buy shares to match the change, creating short-term demand for Veeva stock.
- The company’s stock is still down about 30% this year, reflecting investor worry that AI could upend parts of the cloud software business.
- Veeva sells cloud tools to life-sciences companies, reported $836 million in quarterly revenue and $244 million in profit in March, and has been bolting on AI features through a roughly $100 million Ostro purchase.