Comment by qnpnpmqppnp
14 hours ago
> If a company is 1-2% of the total US market cap and not included in the index, then the index is wrong right now.
To be clear, S&P 500 relies on float, not total US Market Cap, and Space X will have a tiny float.
Even if it was included, SpaceX would not account for 1-2% of the S&P 500 (more like 0.1%), so even if we reason on the basis of a benchmark, it's not a meaningful difference.
https://news.ycombinator.com/item?id=48407542
Thanks, but should I conclude you agree with my point?
Even if he did, it seems he would keep arguing regardless.
No, because after lockups expire in 6 months, SpaceX float would increase to 40-50% and it's float-adjusted weight would be >1% of S&P. This is assuming share prices remain unchanged, when they could go either way.
SpaceX at its current valuation places it as one of the 5 largest companies by market cap in the US.