BREAKING FINANCIAL NEWS: Reuters | SpaceX blocked from early US benchmark index entry as S&P reaffirms existing rules
THIS IS A HUGE VICTORY FOR INVESTORS AND YOUR RETIREMENT
"S&P Global said on Thursday it was not changing the requirements for entry into its major indices, dealing a setback to Elon Musk's SpaceX by effectively ruling out a swift entry for the world's biggest-ever IPO into the benchmark S&P 500 index."
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S&P 500: No Fast Track For SpaceX
"But S&P said "exceptions to the financial viability, seasoning, and IWF (investable weight factor) requirements should not be granted solely based on market capitalization".
"To be included in the S&P 500, a company must be profitable under Generally Accepted Accounting Principles in its most recent quarter as well as for the sum of its most recent four quarters, according to one of the rules S&P left unchanged."
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S&P 500: No Fast Track For SpaceX (cont)
"S&P consulted with investors about shortening the time a megacap company must be publicly listed before joining its indexes, waiving minimum float requirements and removing its profitability requirement."
"The S&P 500 is Wall Street's most widely followed benchmark. Passive S&P 500 index funds with trillions of dollars in assets would have been forced to buy up SpaceX shares had rules been changed to admit it to the index."
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S&P 500: No Fast Track For SpaceX (cont)
If S&P is serious about not removing the profitability requirement, it's very possible that SpaceX will never meet eligibility requirements for the S&P 500.
This is absolutely catastrophic for Musk and Nasdaq's Mega-Cap Squeeze (https://mastodon.online/@mastodonmigration/116693970097030371) as it likely requires the huge pool of S&P backed index funds forced purchases to keep the squeeze going.
It will be interesting to see what happens now with Nasdaq, Russell and CRSP
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