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But in its final decision, S&P Dow Jones Indices said that “no changes will be made to relevant measures including the economic outlook, the period of inflation, or the limited IMF.” Even after waiting a full year, SpaceX, Anthropic, and OpenAI may struggle to deliver the consistent profitability needed to qualify for the S&P 500.
Money rules are different
A quick entry into the S&P 500 would have triggered a $14 billion acquisition of the SpaceX fund, according to Bloomberg Intelligence. Financial research group Bloomberg also reported that OpenAI would have raised more than $8 billion, and Anthropic would have received $4.6 billion from a similar acquisition triggered by their S&P 500 index.
That’s because $7.5 trillion in passively managed funds—common among individual investors and institutional investors—track the S&P 500 by buying shares of companies based on their relative representation in the S&P 500 index. For example, investment giants Vanguard and Fidelity both offer mutual funds that track the structure of the S&P 500.
However, the S&P Dow Jones Indices “made one concession” by changing the weighted rules that can be taken to “lower benchmarks” such as the S&P Total Market Index and the Dow Jones US Total Stock Market Index, according to Quartz. This would allow the IPO to quickly enter those indexes.
In contrast, the Nasdaq Stock Exchange he changed his rules allowing SpaceX to enter the Nasdaq-100 Index within 15 trading days as opposed to the standard three months. Similarly, the provider of the FTSE Russell index decided to give SpaceX and other companies the following quick login to the Russell Top 500 Index after the close of the fifth trading day following the IPO.
SpaceX’s rapid decline in S&P 500 entry comes just days after analysts at Morningstar reported that SpaceX was in the running. “too expensive” ahead of its IPO. The research company valued SpaceX at $780 billion — less than half of SpaceX’s $1.75 trillion IPO goal — largely based on SpaceX’s strengths. Starlink satellite service and launch a rocket business.
