S&P 500 · SpaceX · Elon Musk · Fortune Technology
SpaceX and other mega IPOs may wait years to join the S&P 500
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Mega-IPO candidates including SpaceX are expected to face a long road to entry to the S&P 500 Index, after the company that makes the rules rejected a proposal that included relaxing the requirement that they be profitable.
Key facts
- Evercore ISI research analysts don’t expect Elon Musk’s rocket, satellite and artificial intelligence company to generate positive net income on an annual basis until 2027, according to a person
- Eventually these mega-IPOs will be added to the S&P 500, unless their business models fail, so it is a question of timing,” said Jay Ritter, University of Florida emeritus professor and director
- Mega-IPO candidates including SpaceX are expected to face a long road to entry to the S&P 500 Index, after the company that makes the rules rejected a proposal that included relaxing the requirement
- S&P Dow Jones Indices’ index committee declined to remove a rule that companies generate positive net income for the past year, including the most recent quarter, the firm announced Thursday
Summary
S&P Dow Jones Indices’ index committee declined to remove a rule that companies generate positive net income for the past year, including the most recent quarter, the firm announced Thursday after a month-long consultation. Evercore ISI research analysts don’t expect Elon Musk’s rocket, satellite and artificial intelligence company to generate positive net income on an annual basis until 2027, according to a person familiar with the forecasts, who asked not to be identified as the information isn’t public. “Eventually these mega-IPOs will be added to the S&P 500, unless their business models fail, so it is a question of timing,” said Jay Ritter, University of Florida emeritus professor and director of the IPO Initiative.