S&P Dow Jones Proposes Changes to Index Methodology
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 04 2026
0mins
S&P Dow Jones Indices (SPGI) conducted a consultation with market participants on potential changes to the S&P U.S. Indices Methodology and Dow Jones U.S. Total Stock Market Indices Methodology related to MegaCap companies. As part of proposed changes, the company proposed, "Initial public offerings should be traded on an eligible exchange for at least 12 months before being considered for addition to an index. Spin-offs or in-specie distributions from existing constituents are not required to have 12 months of trading prior to their inclusion in the S&P Composite 1500. Companies that migrate from an ineligible exchange, emerge from bankruptcy, are newly designated to be domiciled in the U.S. for index purposes by S&P Dow Jones Indices, or convert from an ineligible share or organizational type to an eligible type do not need to trade on an eligible U.S. exchange for 12 months before being considered for addition." Space stocks including Intuitive Machines (LUNR) and Rocket Lab (RKLB) were trading lower in after-hours following the news, as the proposal would deny SpaceX (SPCX) early inclusion.
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Analyst Views on RKLB
Wall Street analysts forecast RKLB stock price to fall
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 107.980
Low
63.00
Averages
86.89
High
120.00
Current: 107.980
Low
63.00
Averages
86.89
High
120.00
About RKLB
Rocket Lab Corporation is an end-to-end space company. The Company designs and manufactures small and medium-class rockets, spacecraft and spacecraft components, and related software and services to support the space economy. The Company delivers reliable launch services, satellite manufacture, spacecraft design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions that make it easier to access space. Its Launch Services segment provides launch and launch-related services to customers on a dedicated mission or ride-share basis. Its Space Systems segment comprises the design and manufacture of spacecraft components and spacecraft program management services, space data applications, and mission operations. Its space systems solutions are the building blocks for spacecraft, which include composite structures, reaction wheels, star trackers, solar solutions, radios, separation systems, and command and control spacecraft software.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Rocket Lab Revenue Growth: Despite the stock decline, Rocket Lab reported $680 million in revenue over the past 12 months, reflecting a remarkable 1,000% growth over the last five years, indicating strong potential in the space launch market.
- Neutron Rocket Development: Rocket Lab is developing a larger Neutron rocket, expected to debut later this year, which should significantly boost revenue generation and attract more commercial clients to its launch services, enhancing its market position.
- Investor Strategy Advice: Given the high P/S ratios of both SpaceX and Rocket Lab, analysts recommend that investors exercise caution and consider seeking alternative investment opportunities to mitigate high risks.
See More
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- Industry Outlook Analysis: Despite high market valuations, there are still growth stocks worth considering; the performances of Chewy, DraftKings, and Rocket Lab indicate that investors can find potential growth opportunities in volatile markets, especially in technology and consumer goods sectors.
See More
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- Capital Utilization Plan: The $75 billion raised will be allocated to Starship production, Starlink constellation expansion, Terafab manufacturing, and orbital infrastructure development, driving the growth of the commercial space economy and enhancing SpaceX's competitiveness in the global market.
- Alphabet's Windfall: Alphabet's $900 million investment in SpaceX in 2015 is now valued at approximately $122 billion, significantly exceeding its annual net income, highlighting the extraordinary asset appreciation following SpaceX's public listing, further solidifying Alphabet's leadership in search and cloud computing.
- Rocket Lab's Market Opportunity: As a key player in the small satellite launch market, Rocket Lab is developing its Neutron rocket and has signed contracts worth nearly $1 billion, benefiting from SpaceX's IPO which is expected to attract more institutional capital into space infrastructure, enhancing its market position.
See More
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- Alphabet's Hidden Gains: Alphabet's 6.11% stake in SpaceX is now valued at approximately $122 billion, showcasing an extraordinary unrealized gain following SpaceX's IPO, which solidifies its dominance in search, cloud, and AI markets.
- Rocket Lab's Market Opportunity: As a key player in the small satellite launch market that SpaceX cannot serve, Rocket Lab is developing its Neutron medium-lift rocket and has signed contracts worth nearly $1 billion, positioning it to benefit directly from the industry attention and capital influx following SpaceX's IPO.
- Kratos' Infrastructure Demand: Kratos Defense secured a $446.8 million contract to build ground architecture for the U.S. military's next-generation missile warning constellation, and with increased launch demands from SpaceX's IPO, its commercial software-defined satellite ground solutions are set to capture a larger market share.
- Intuitive Machines' Lunar Economy: Intuitive Machines has a backlog of $1.055 billion as of Q1 2026, and as SpaceX's Starship advances lunar missions, its role in the lunar economy will expand, driving further commercial growth.
See More
Four Stocks to Avoid Right Now
- Market Warning Signs: The stocks mentioned in the video showed poor performance on June 17, 2026, indicating potential downside risks that investors should be cautious about.
- Investor Attention: The video advises investors to pay attention to warning signs associated with these stocks to avoid significant losses, highlighting the importance of market volatility in investment decisions.
- Short-term Risk Assessment: The analysis suggests that the current market environment may lead to greater downside pressure on these stocks in the short term, prompting investors to reconsider their portfolios.
- Subscription and Offers: The video encourages viewers to subscribe to the channel and click on the special offer link, indicating the content creator's intention to provide more information to help investors make informed decisions.
See More
Commercial Space Economy Approaches Trillion-Dollar Scale
- Market Size Growth: The global space economy approached $613 billion in 2024 and is projected to exceed $1 trillion by the early 2030s, indicating strong investment appeal and market potential.
- Increased Investment Opportunities: The landmark public listing of a marquee private launch company in 2026 has provided investors with broad access to the orbital economy for the first time, marking a maturation and increased investability of the space sector.
- Diversified Demand: Investor interest is expanding across the entire value chain, including launch services, satellites, broadband constellations, and national security space, reflecting the broad applications and growth potential of the space economy.
- Index Recognition: The inclusion of smaller commercial space companies in major benchmarks like the Russell 3000 signifies the sector's transition from speculative novelty to a recognized market category, attracting more capital inflow.
See More
