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Dell and Palantir to join S&P 500; shares of both jump
- deleted 2y ago[deleted]
- tedunangst 2y agoSo Dell surged all the way up to where it opened this morning.
- killingtime74 2y agobuy low sell high
- rvz 2y ago> Dell is replacing Etsy Esty had no place in the S&P 500 in the first place. Looking at the chart it was a pump and dump stock and was only pumped due to the zero interest rate phenomenon with decades of QE (quantitative easing) policy. Etsy should join the rest of the worthless SPAC companies that almost all of them ran straight to zero. Goodbye. Tesla was lucky this time. They are next to be kicked out of the S&P 500 if they decide to join in the race to continue to damage their own stock.
- kylebenzle 2y agoAgree 100% Etsy is now worthless but claiming Tesla is similar to Etsy seems to be pushing it. Etsy's biggest "innovation" was they displayed their hand picked products on the homepage by color. Tesla single handedly drove adoption of electric cars to where it is today, for better or worse Tesla has had a MAJOR impact on the world.
- zooq_ai 2y ago[dead]
- refulgentis 2y agoThere's a ton of successful companies that also were described this way, and I agreed, in 2018. I was wrong on most of them. Memento mori, hindsight is 20/20. Using one company as evidence of a broad thesis makes the argument seem weaker, not stronger. Hell, Uber. I can't remember a single time their prospects were ever discussed positively, they were the "ZIRP" poster boy.
- reducesuffering 2y agoUber is the prime example of proving the perma-bears wrong. They were a great investment for everyone but possibly the last private Softbank overvaluation. Their rides have been profitable for years and are a $150 billion company after 5% rates.
- refulgentis 2y agoExactly
- TheAlchemist 2y agoI just looked it up, and I'm not sure it can be used as an example of proving perma-bears wrong. As it is, the company is valued at $150 billions, but in the past 5 years only the last one was profitable - with a $2 billion profit. Where do you see the 'rides have been profitable for years' ? It actually looks quite wildly overvalued to me. Perma-bears will be proved wrong once the company start making real money justifying their valuation.
- reducesuffering 2y ago“with trips up 22% and a GAAP operating profit, for the first time in Uber’s history”[0] And I believe that was YoY profit, so profitable the year before that date and profitable the past year since. Investing in Uber Eats expansion was hampering profitability but not the rides. Before rides was profitable they were a $50b company, so if you correctly believed they would improve probability, you would’ve 3x your investment from 2 years ago. Same thing happened for those critical Facebook, Google, or Amazon could ever be profitable. [0] https://investor.uber.com/news-events/news/press-release-details/2023/Uber-Announces-Results-for-Second-Quarter-2023/default.aspx https://investor.uber.com/news-events/news/press-release-det...
- sealeck 2y ago> Etsy should join the rest of the worthless SPAC companies that almost all of them ran straight to zero. Goodbye. I don't think Etsy is worthless (it has ~US$2.5bn in revenue), but I think the correct value of Etsy is much lower than it currently is and certainly not a valuation with a market cap placing it in the S&P500.
- brightball 2y agoUmmm…Tesla was lucky? Can you explain that stance?
- hmmokidk 2y agoI don’t like Elon but Tesla I think deserves to be there. Stocks are kind of like how much people beleive in a company. And lots of people believe in them as they have products people like and a strong brand.
- andrewmcwatters 2y agoNot at all how stocks work, and it can be dangerous as a society if we encourage saying things like this.
- matrix87 2y ago> and it can be dangerous as a society if we encourage saying things like this. why?
- andrewmcwatters 2y agoBecause in particular, impressionable young men in large amounts in the public think ownership of businesses works in ways that it definitely does not, and it affects the way they make purchasing decisions. You’re not buying “a stock,” you’re buying shares of an actual business and you need to judge for yourself a reasonable price as to what you think you’re buying it for. I’d argue we’re probably already there. It’s why people don’t think twice about paying $25+ per $1 of earnings and don’t realize what a stupid decision that is and then they try and rationalize it by saying, “Oh, well the business will continue to grow and that’s what you’re paying such high prices for.” No, you’re just getting scammed. It’s the same thinking that led us to predominantly young men buying a non-tangible thing just because it goes up in price, in the hopes that some greater fool will buy it from you for said greater price.
- matrix87 2y ago> No, you’re just getting scammed But hasn't the market already incorporated PE ratio (and other factors) into the company's estimated value? It sounds like what you're saying is PE ratio has more predictive value than whatever indicators people are using (e.g. press coverage and leather jackets) Or are you saying that our entire concept of value is screwed up? Not really clear
- nojvek 2y agoTesla is worth $650B. #11 largest US company. They’re making profits, selling more cars every year. I get it’s fashionable to dish Elon, but their fundamentals say its unlikely they’ll fall out of S&P500
- Hizonner 2y agoIt's really depressing that a spying company like Palantir is big enough to be in the S&P. One presumes that the Ithil-stone was the one recovered as Thiel began once again to extend his power over the affairs of Men.
- walterbell 2y agoThe FISA Section 702 renewal in 2024 covers many companies, https://www.eff.org/deeplinks/2024/04/us-senate-and-biden-administration-shamefully-renew-and-expand-fisa-section-702-0 https://www.eff.org/deeplinks/2024/04/us-senate-and-biden-ad... > this new provision is written so expansively that it potentially reaches any person or company with “access” to “equipment” on which electronic communications travel or are stored, regardless of whether they are a direct provider. This could potentially include landlords, maintenance people, and many others who routinely have access to your communications on the interconnected internet.
- bdjsiqoocwk 2y agoHow does this replacement affect the index itself, does anybody know? If the weights of the company dropped and company included are the same, is that enough that the index's fundamental value doesn't move?
- killingtime74 2y agoNot sure understand your question. The new companies are on the up and the old ones have fallen below inclusion threshold. If they didn't do replacement you would have companies bigger outside the index than the ones inside.
- Ekaros 2y agoWeirdly it might be possible for there to be bigger company outside than inside. If they did not make consistent profit, but still were maybe thinly traded and looked growing like Nvidia for example while burning money on investing like Amazon...
- Apreche 2y agoDid the shares jump just because there are many ETFs, including some big ones, that track the S&P500? I imagine those funds had to sell shares in whatever stocks were leaving the index, and buy shares in Dell&Palantir.
- bradleyjg 2y agoNot yet, institutional investors aren’t buying after hours. This is speculators trying to get in ahead of the institutional buyers.
- golergka 2y agoTechnically speaking, what you're saying is not a counter argument, because the causal relationship between the two still holds. They shares are spiking because EFT will buy them. Because other players on the market anticipate it.
- baby 2y agoYou'd think they might have already bought in anticipation to avoid exactly this. Or OTC
- 0cf8612b2e1e 2y agoWouldn’t a hedge like that be in violation of the ETF? You claim you are going to purchase a weighted distribution of 500 companies, but you actually own 515, just in case?
- bradleyjg 2y agoDepends on the exact language in the prospectus.
- bradleyjg 2y agoMaybe some atm options on the four or five most likely candidates.
- 2y ago
- jgalt212 2y agoKarp is a genius at saying exactly what the investors yearn to hear.
- theanonymousone 2y agoIs S&P (and other indices) some "automated" collection, i.e. at the end of each trading day, the top 500 firms are automatically considered S&P 500? or they should stay there for some time so that some organisation "adjusts" the list eventually?
- deleted 2y ago[deleted]