The S&P 500 is changing its rules for SpaceX and OpenAI. | These “mega IPOs” could be worth more than $1 trillion when they start trading. Elon Musk and Sam Altman are pressuring stock exchanges – and indexes such as the S&P 500 and Nasdaq – to fast-track inclusion of these newly public stocks. | Go here to claim Pre-IPO shares before the June IPO. | S&P published a proposal Thursday to rewrite its eligibility criteria for mega-cap companies ahead of the biggest wave of IPOs in history. | Here's what's changing. | Under the new rules, large companies would only need to be public for six months — not twelve — before joining the S&P 500. And mega-cap IPOs would be exempt from the profitability requirement entirely. | That last part matters. SpaceX, OpenAI, and Anthropic are not currently profitable. Under the old rules, they couldn't get into the index. | Under the new rules, they walk right in. | S&P defined mega-cap as the top 100 companies by market value. SpaceX, targeting a valuation of $1.75 trillion, would land around #7 in the U.S. — between Broadcom and Meta. | The consultation period closes May 28. S&P said any changes would take effect before June 8 — just weeks before SpaceX is expected to begin trading. | The timing is not a coincidence. | Nasdaq already made some important changes. New rules went live May 1 that allow large companies to join the Nasdaq 100 just 15 days after their IPO. The old rule was 90 days. | What does all of this mean in practice? | Index and ETF funds tracking the S&P 500 and Nasdaq 100 represent trillions of dollars in passive investments. When a stock joins one of these indexes, those funds are required to invest— resulting in billions of automatic investments. | Analysts estimate that S&P and Nasdaq index inclusion could trigger $50 billion or more in forced buying after the SpaceX IPO. That translates into roughly 2/3 of the entire stock offering. | That's a significant tailwind for the share price once it starts trading. | The infrastructure for a massive debut is being built right now. | Wall Street is preparing. The indexes are changing their rules. And the SpaceX IPO remains on-track for late June or early July. | I'm not waiting. I'm securing a stake before it starts trading. | Go here to grab your Pre-IPO shares today. | Ian Wyatt
Editor, Daily Profit |
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