(SeaPRwire) –
By: Logan Pierce
SpaceX and other big IPO candidates may be in for a long wait to join the S&P 500. The index committee declined to ease the profitability rule. SpaceX might not see positive net income annually until 2027, delaying entry until 2028 if the rule holds.
Anthropic and OpenAI, weighing IPOs this year, could face similar hurdles. Anthropic’s June quarter profit is expected, but future profitability is uncertain due to spending. OpenAI isn’t expected to be profitable soon.
The S&P 500 aims to mirror the US market. Maintaining the net income requirement is tough to defend, yet some think it benefits the index. Research shows SpaceX’s capital expenditures will soar, with positive free cash flow predicted later.
Holding the line on the rule has split market watchers. But the S&P 500 is sticking to its rules, unaffected by big names like Elon Musk’s SpaceX.
Author bio: Logan Pierce, independent business writer covering tech and finance trends on Medium.
