But in its final decision, the S&P Dow Jones Indices stated that “no changes will be made to the eligibility criteria including financial viability screens, seasoning period, or minimum IWF.” Even after the standard yearlong wait, SpaceX, Anthropic, and OpenAI may struggle to deliver the consistent profitability necessary to qualify for the S&P 500.

Money rules and exceptions

Swift entry into the S&P 500 would have triggered $14 billion of passive fund buying for SpaceX, according to Bloomberg Intelligence. The investment research arm of Bloomberg also estimated that OpenAI could have gained more than $8 billion, and Anthropic could have netted $4.6 billion from similar passive buying sprees triggered by their S&P 500 entries.

This is because $7.5 trillion in passively managed funds—popular among both individual investors and institutional investors—follow the S&P 500 by purchasing shares of companies according to their proportional representation in the S&P 500 index. For example, the Vanguard and Fidelity brokerage giants both offer passive investment funds that track the S&P 500 composition.

However, the S&P Dow Jones Indices did “carve out one concession” by changing the investable weight factor rules for “lower-profile benchmarks” such as the S&P Total Market Index and Dow Jones US Total Stock Market Index, according to Quartz. That could allow an IPO faster entry into those indexes.

By contrast, the Nasdaq stock exchange changed its rules to allow SpaceX to enter the Nasdaq-100 Index within 15 trading days as opposed to the usual three months. Similarly, the FTSE Russell index provider decided to give SpaceX and other follow-on companies accelerated entry to the Russell Top 500 Index after the close of the fifth trading day following an IPO.

The denial of accelerated S&P 500 entry for SpaceX comes just days after Morningstar analysts described SpaceX as having been “significantly overvalued” in the lead-up to its IPO. The investment research firm valued SpaceX at $780 billion—less than half of SpaceX’s $1.75 trillion IPO goal—primarily based on the strengths of SpaceX’s Starlink satellite service and rocket launch business.