Last night, S&P Global (SPGI) said that SpaceX’s (SPCX) initial public offering must follow existing rules for its inclusion in the index. Demand for this IPO is so oversubscribed that Schwab (SCHW) set rules for margin requirements and flipping. Other brokerages are getting a spike in call volumes asking about the IPO.
S&P’s refusal to change its criteria to fast-track the SPCX stock inclusion is a positive development. It said that IPOs require being traded on an eligible exchange for at least 12 months. In addition, it requires such factors as GAAP profits in its latest quarter and for the four quarters before inclusion in its index.
Micron (MU) might add to its losses from Thursday. The stock peaked at $1,089.29 and will open down by over 4% this morning, to $953.20.
On paper, MU stock looks cheap at a forward P/E of 18.3 times. But a forward multiple depends on an analyst's earnings forecast. A downturn in the cyclical industry of memory chips would hurt future results. The stock market is not pricing that risk.
Retailer Lululemon (LULU) will open down by 10.5%. It posted revenue and GAAP EPS that beat expectations. However, the firm, led by a newly hired CEO from Nike (NKE), issued weak guidance for 2026. The more the stock falls, the more likely Nike is to buy out LULU investors at lower prices.
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