What is the possibility of being adopted in the PLTR S&P 500 Index?
On June 7 $S&P 500 Index (.SPX.US)$ A rebalance has been carried out, $Palantir (PLTR.US)$It is eligible for inclusion for the 3rd time. Since AI is attracting attention and Palantia's performance remains strong, there is a very high possibility that it will be adopted by S&P, and there is a possibility that PLTR will make a breakthrough like Tesla.
First, let's explain why Palantia is a candidate for inclusion. In order to be included in the S&P 500 Index, it is necessary to meet several strict standards relating to market capitalization, liquidity, financial soundness, and corporate governance. In order for Palantia Technologies (PLTR) to be considered a strong candidate for the S&P 500 component, these key conditions must be met:
1.Market capitalization: Market capitalization: There must be a total market capitalization of at least 14.6 billion dollars (as of 2023). Palantia's total market value has been above this standard for a while.
2.Liquidity: Businesses need to have sufficient liquidity and high transaction volume. Palantia shares are actively traded, reflecting strong investor interest and sufficient liquidity.
3.Financial soundness: A surplus recorded for the most recent quarter and the last 4 quarters combined. Palantia has demonstrated profitability, and GAAP-based EPS has been positive in the most recent quarter (InvestorPlace).
4.Being based in the US: Since Palantia is headquartered in Denver, Colorado, and earns large amounts of revenue from operations in the US, it falls under this standard.
5.Public float: At least 50% of the shares must be publicly traded. Palantia's public share ratio is sufficient to meet this requirement, and since institutional investors' ownership ratio is high, it can be seen that it is widely distributed among general shareholders.
Although Palantia meets all of the eligibility criteria,The only thing that seems to be an issue is corporate governance, which means that insiders own a lot of shares.
As you know, Tesla recorded a 70% increase in the weeks before listing and one month after listing. But it's not just Tesla. Once incorporation into the SP500 was announced, many other “well-known” brands skyrocketed.
$NXP Semiconductors (NXPI.US)$ Date of incorporation: 2019/3/20
Total market value at time of incorporation: approximately $30 billion
performance
A few weeks until incorporation In the month until the incorporation announcement on 2019/2/28, NXP's stock price rose by about 10%.
Month after incorporation: In the month after incorporation, NXP's stock price increased by approximately 6%.
$Advanced Micro Devices (AMD.US)$ Date of incorporation: 2017/3/20
Total market value at time of incorporation: Approximately $20 billion
performance
A few weeks until incorporation In the month leading up to the incorporation announcement on 2017/2/28, AMD's stock price rose by about 12%.
Month after incorporation: AMD's stock price increased by approximately 9% in the month following incorporation.
The “S&P 500 effect” is a real phenomenon, and I think it is stronger if it is a well-known company like Palantia.
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白のサルマン : I'm from the PLTR Gachiho tribe, and I'm sure they're still being hired this time. We are imagining a scenario where the SP500 will be adopted after showing an overwhelming increase in sales and profit around the Q3 financial results. It has been rejected for the current SP500, and we anticipate that it will hover around $15-20 per share. I think this would be a great place to buy. I want that to happen. It's completely uninteresting for an Alex Carp legend to be easily adopted by the SP500 as it is. It made a big comeback after being drastically debunked by the media and crashed to around $10 per share. This is the story we're looking forward to, isn't it? So I'm very hopeful that the SP500 will not be adopted!!