r/investing
Anyone changing their plans for SpaceX?
Discussion on whether SpaceX's exclusion from the S&P 500 due to unprofitability changes investment strategies for its upcoming IPO.
- Exclusion from the S&P 500 means missing out on passive inflows from index funds, potentially limiting initial price support.
- The requirement for profitability highlights fundamental financial risks that value-oriented investors may find concerning.
Today I learned that SpaceX won't be automatically added to the S&P 500 after its IPO because it doesn't meet the index requirements.
For those planning to invest in SpaceX, does this change your strategy at all? Are you still buying right away, waiting, or passing?
https://arstechnica.com/tech-policy/2026/06/sp-500-blocks-fast-spacex-entry-wont-waive-rule-for-unprofitable-ai-firms/
My plan is to continue using my extremely rare and controversial skill called common sense.
Reddit is going to be a toxic hellhole when this company goes public and ends up doing really well.
it will probably do well but it will still be overpriced
See Sky-High I.P.O. Pricing Isn’t Great for Real People in NY Times.
Professor Ritter has compiled an extensive I.P.O. public database, and has educated journalists like me about this intricate subject over many years. ... He ran the numbers for all U.S. I.P.O.s with at least $100 million in sales from 1980 through 2024. Then he sorted them by price-to-sales ratio. He found that when that ratio exceeded 40 to one — meaning it would take 40 years of sales to equal the market value at that share price — the average return over the next three years was terrible. Specifically, it underperformed the market by 15.4 percent when calculated from the insider, or “offer price,” and 58.5 percent from the closing price on the first day of trading. That closing price is what ordinary investors are likely to obtain.
SpaceX will have a price to sales ratio of 60 to 106. Based on historical analogs, it is likely underperform the market. Similar for Anthropic and OpenAI.
In contrast, the Mag-7 had a price to sales ratio of about 10 their IPO, and an end of day price of 13.3.
going to be? Sir we're already there. If you're not an anti-capitalist bisexual, you have no place here.
Without a helmet.
Helmets are for protecting brains, unnecessary in this case.
Have a look at one of a thousand posts on Reddit about it.
Why the downvotes? Seems sensible to me..
I've separated my US large cap holding into separate ETFs for growth and value. VUG is the growth holding, and it tracks the CRSP US Large Cap Growth index. I don't think they plan to include SpaceX right away.
There is no way that I'm investing in SpaceX stock directly.
No
Because you can lose 1/3 of your money without the S&P inclusion?
Which fund are you using?
ACWX
One often meets his destiny on the road he takes to avoid it. -Master Oogway
It was overvalued before, It will be overvalued afterwards. But I might try a quick short term gain if thinks look promising