SpaceX Can't Join the S&P 500 Before June 2027 -- and Its Losses Could Keep It Out Longer
The Nasdaq-100 let the rocket and AI giant in within a month of its IPO. The S&P 500 needs something it hasn't produced as a public company: profits.
Overview
When SpaceX (NASDAQ:SPCX) entered the Nasdaq-100 on July 7, index funds tracking that benchmark had no choice but to buy the stock -- under a month after the company's initial public offering. Some investors might be hoping the S&P 500 (SNPINDEX:^GSPC) prompts another round of that sort of buying.
S&P Dow Jones Indices, which manages the index, has already ruled out an early entry. On June 4, it opted not to fast-track huge IPOs into its flagship index, and its logic was straightforward: size by itself doesn't win an exception to the rules.
Details
That left SpaceX, with a market value close to $2 trillion, up against the same three tests as every other candidate.
Source
Originally published at www.fool.com.