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SpaceX, Other Mega IPOs Denied Fast Index Entry by S&P

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Re: SpaceX, Other Mega IPOs Denied Fast Index Entry by S&P

#51

Post by wiwiw1 »

JumpCrisscross wrote: post #23
stubish wrote: post #9

This seems a sensible thing to do. If you change the rules on how things end up on your index, you force everyone using that index to reevaluate it. Your index is now perceived as more volatile (and probably is), and all the finance people need to reevaluate the risk of their index funds and decide if it is now 'growth', 'high growth' or whatever bucket it belongs in based on the new risk profile. And then all the po…

> sensible thing to do is to create a new index with the new rules It depends. Indices aren’t funds. They aren’t meant to balance investor interests. They’re meant to communicate some metric about the market. The S&P tells you how big companies are doing in an index optimized to balance representation against trading cost. So in 2005, float was taken into account for weighting (versus just market cap). This made sens…

an etf that tracks the S&P 500 is what then?

This is a big win for many S&P 500 etf holders

Re: SpaceX, Other Mega IPOs Denied Fast Index Entry by S&P

#52

Post by impure »

stubish wrote: post #9

This seems a sensible thing to do. If you change the rules on how things end up on your index, you force everyone using that index to reevaluate it. Your index is now perceived as more volatile (and probably is), and all the finance people need to reevaluate the risk of their index funds and decide if it is now 'growth', 'high growth' or whatever bucket it belongs in based on the new risk profile. And then all the po…

They have to be rebalanced every quarter regardless. And I'm not sure how many people would actually sell due to the inclusion of a single company. They're very loud about it, but no evidence that this is causing a significant amount of selling.

Re: SpaceX, Other Mega IPOs Denied Fast Index Entry by S&P

#53

Post by jauntywundrkind »

arowatbk wrote: post #42

https://podcasts.apple.com/ca/podcast/the-rational-reminder-... Long listen but a very thorough and nuanced discussion by a bunch of smart investment / finance guys in Canada. No click-bait-sky-is-falling content.

[flagged]

Re: SpaceX, Other Mega IPOs Denied Fast Index Entry by S&P

#54

Post by Spooky23 »

queuebert wrote: post #35
WarmWash wrote: post #29

Earlier quoted context omitted.

Yeah, but is SpaceX actually worth $1T or does Elon just think that because of how Tesla investors value Tesla?

Historically a $1T market cap with a PE of 20.0 would be achievable with a $50B/yr profit. That seems easily achievable eventually for SpaceX, as it has actual hardware and services and IP.

Yet, I, a relative peasant financially has been hit by 3 different brokers that I'm eligible to participate in the offering. I would hazard a guess they are not getting the uptake in institutional money they were hoping for.

Re: SpaceX, Other Mega IPOs Denied Fast Index Entry by S&P

#55

Post by protocolture »

JumpCrisscross wrote: post #3

The amount of misinformation around this topic was absolutely nuts over the past few days. Good rule of thumb: if a YouTuber or other influencer was pitching doom and relaying this rule change by S&P as a fait accompli , stop following them. (It was a common misconception on this thread: https://news.ycombinator.com/item?id=48364055 .)

>if ... YouTuber... stop following them.

Great advice.

Re: SpaceX, Other Mega IPOs Denied Fast Index Entry by S&P

#56

Post by duttish »

d--b wrote: post #34

Note that Nasdaq and Russel did put in place fast entry rules. S&P is the only one that didn’t. https://www.nasdaq.com/articles/new-fast-tracks-account-olde...

Yea, this is great but I'm not sure how much this helps since it's just 1/3 keeping their wits about them.

Nasdaq clearly did it for the big bucks and getting the listing, why did Russell bend the knee?

Re: SpaceX, Other Mega IPOs Denied Fast Index Entry by S&P

#58

Post by nobodyandproud »

JumpCrisscross wrote: post #3

The amount of misinformation around this topic was absolutely nuts over the past few days. Good rule of thumb: if a YouTuber or other influencer was pitching doom and relaying this rule change by S&P as a fait accompli , stop following them. (It was a common misconception on this thread: https://news.ycombinator.com/item?id=48364055 .)

Wrong.

HN has been speculating on how wealth would be extracted from 401k and IRAs at least since the November elections in 2024.

Far before any influencers even thought this would be a thing.

I thought forced cryptocurrency funds, but it turned out to be something else.

Re: SpaceX, Other Mega IPOs Denied Fast Index Entry by S&P

#60

Post by duttish »

SwellJoe wrote: post #40
queuebert wrote: post #35

Earlier quoted context omitted.

Historically a $1T market cap with a PE of 20.0 would be achievable with a $50B/yr profit. That seems easily achievable eventually for SpaceX, as it has actual hardware and services and IP.

It's years away from $50B/year profit, if it ever gets there. The IPO valuation is insane.

Plus they now also have to compensate for the giant money fire called xai and the nazi cuddle huddle X/Twitter.

The valuation is insane and the very low float plus short timeframe for actual price discovery just seems built to extract money from index investors.

They can follow the same rules as everyone else.

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