Aswath Damodaran's warning on trillion-dollar fight over SpaceX and OpenAI in world's most powerful stock index (opens original article in a new tab)

Aswath Damodaran warns that the inclusion of SpaceX, OpenAI, and Anthropic in the S&P 500 could alter the index's fundamentals, with any decision delayed until 2027 at earliest. He argues that index inclusion does not guarantee stock price increases and that the impact will be on the index's earnings, growth, and risk profile.

• Aswath Damodaran warns that including SpaceX, OpenAI, and Anthropic in the S&P 500 could change the index's fundamentals.
• S&P 500 requires at least one year of trading before a company can be eligible for inclusion, delaying any decision on these companies until 2027 at earliest.
• Damodaran argues that index inclusion does not guarantee sustained stock price increases and that the impact of adding these companies will be on the index's earnings, growth, and risk profile.