Uber Joins the S&P 500

Re:Uber Joins the S&P 500 by redox99 on Friday December 01, 2023 @07:09PM (#38494364)

I assume joining the SP500 means an almost automatic price jump, since its shares will be purchased by ETFs that track that index?

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Re:Uber Joins the S&P 500 by apstats on Friday December 01, 2023 @07:11PM (#38494389)

If this were surprise news maybe, but this is the type of news that is priced in slowly over time and somewhat expected. Basically when sophisticated people bought uber a year ago one of the drivers of a higher price was the assumption it might be included in the S&P500.

A lot of things in finance and markets are self fulfilling prophecies like this, for example just look at the fed. They are the classic example of expectations > action.

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Re:Uber Joins the S&P 500 by travisjungroth on Friday December 01, 2023 @07:45PM (#38494625)

There’s still a jump proportional to how unexpected it was by the market as the bets are settled, so to speak. Until it’s announced, there’s some contingency that thinks it won’t happen and is putting downward pressure on the stock. Eyeballing the small jump here hints that it was a small contingency.

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Re:Uber Joins the S&P 500 by zzleeper on Friday December 01, 2023 @07:30PM (#38494517)

I wish there would be a way to just buy sp500 minus a list of firms, so I could invest in a diversified way without going into Uber and friends (or any other firms that make profits on paper without the cash flow to back it)

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Re:Uber Joins the S&P 500 by neilv on Friday December 01, 2023 @08:04PM (#38494740)

https://pebble.finance/

(Disclosure: The CEO is an acquaintance, but I have no financial interest.)

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Re:Uber Joins the S&P 500 by koolba on Friday December 01, 2023 @08:17PM (#38494819)

So buy SPY and short Uber?

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Re:Uber Joins the S&P 500 by zzleeper on Saturday December 02, 2023 @03:05PM (#38501537)

Can you do this easily? Without paying $$ in transaction costs due to shorting (plus margin)

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Re:Uber Joins the S&P 500 by afterburner on Friday December 01, 2023 @08:25PM (#38494878)

There's at least one ETF that tracks the top 50.

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Re:Uber Joins the S&P 500 by AdamJacobMuller on Friday December 01, 2023 @07:38PM (#38494571)

Most trading APIs are fairly simple, TD for example is very easy to use and very accessible. IBKR is a bit weirder in both protocol and access, but, works very well.

You can pretty trivially DIY that.

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Re:Uber Joins the S&P 500 by mynameishere on Friday December 01, 2023 @08:51PM (#38495040)

Fractional shares would work, if you don't want the expense and unreliability of shorting.

Simplest thing would be to find an actively-managed mutual fund that focuses on what you want. (Warning: What you want is probably to lose money compared to the rest of the market.)

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Re:Uber Joins the S&P 500 by JumpCrisscross on Friday December 01, 2023 @08:59PM (#38495104)

> firms that make profits on paper without the cash flow to back it

Uber is cash-flow positive [1].

Due to stock-based compensation, many profitable tech firms hit this metric before GAAP. Put another way, if you owned the entire business, you could sustainably extract those profits.

[1] https://s23.q4cdn.com/407969754/files/doc_earnings/2023/q3/e...

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Re:Uber Joins the S&P 500 by starcraft2wol on Friday December 01, 2023 @10:15PM (#38495548)

Be careful. The indexers might hear this and reassure you that the S&P is only optimal with Uber included at exactly the date it did and the fund will fail otherwise.

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Re:Uber Joins the S&P 500 by lolbase on Saturday December 02, 2023 @02:07AM (#38496604)

You can do this with most direct indexing solutions.

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