Why has Palantir not been included in the S&P 500?
To start, Palantir is a prominent player in artificial intelligence (AI) and data analysis.
Its software is designed to assist organizations in managing vast amounts of data and identifying patterns that can lead to better outcomes and increased efficiency.
Palantir's stock entered the market through an initial public offering (IPO) in 2020.
Since then, the company's market capitalization has grown to $53 billion, ranking it as the 355th largest American company by market cap.
The S&P 500, on the other hand, consists of the 500 largest American companies listed on the New York Stock Exchange or the Nasdaq, based on their market capitalization.
In addition to meeting a minimum market cap threshold of $13.1 billion, a company must also have a certain number of shares available for trading and must report positive earnings for the most recent quarter as well as over the trailing 12 months.
Palantir did not meet these criteria until recently due to its lack of profitability.
However, this changed in its most recent quarter, where it reported profits, making it eligible for consideration.
Despite this, Palantir has not yet been added to the S&P 500, likely due to the index's quarterly update schedule and the need for stability in the company's performance.
It is expected that Palantir will be included in the S&P 500 in the near future, potentially by the end of the year.
This inclusion could further enhance the company's already strong stock performance.