The 3 New Stocks That Were Added To The S&P 500 Last Friday

Benzinga

Palantir Technologies, PLTR, Dell Technologies, DELL, and Erie Indemnity, ERIE, were added to the index following Friday’s market close. Palantir would replace American Airlines, Dell would replace Etsy, and Erie would replace Bio-Rad Laboratories in the S&P 500 before the start of trading on Sept. 23.

Transcript

00:00SMP 500 ads that went in over the weekend.

00:03Yeah, and this was huge.

00:04And there was some speculation.

00:06I tweeted five stocks that have been speculated out

00:10in social media, which ones were going in.

00:12Some obvious candidates.

00:14There's one in there that was off the board, ERIE.

00:16But there was basically five stocks

00:19competing for a couple of spots here, and two of them got in.

00:25So we had Dell Technologies.

00:28We had ERIE, Indemnity.

00:31That was one that was off the board.

00:32I did not hear that one from them.

00:34I know.

00:34I was like, all right, well, it's an SMP 500.

00:36Now we might start hearing about it more.

00:37Replacing American Airlines, Etsy.

00:40And they'd already announced this one.

00:42BioRad Laboratories.

00:43And Palantir is replacing.

00:46Palantir is also coming in.

00:47But didn't they already announce Palantir before this?

00:50Or was that also announced over the weekend?

00:51No, Palantir has been on the board.

00:52So if you follow this, and I follow it very closely

00:55because I do index Arab, and I follow it all.

00:57Often on the Friday nights.

00:59Palantir is the last two, three ads that we've had.

01:03We've been thinking it's going to be Palantir.

01:05It's possible.

01:06But the market, I shouldn't say we.

01:08The market's been thinking Palantir.

01:09And then it doesn't go in, and it sells off.

01:11It doesn't go in, and it sells off.

01:13The one stock that has been doing that even more

01:16is Workday.

01:16They have been expecting Workday to go in, I feel like, forever.

01:21And every time it doesn't go in, I used to even play it.

01:24I was like, I think it's going to go in.

01:25And I remember getting beat the hell up on it.

01:28It's very speculative because when they don't go in,

01:30it's not like, oh, they don't go up.

01:32Oh, no, they crush them because they're expected to go in.

01:35And everybody even was on Twitter

01:37was thinking that this is Workday.

01:38Workday is going to do it.

01:39It's had the big run up here.

01:41It had the gap up, the charts.

01:43And not that they're chartists over at S&P,

01:45but I don't think that it hurts that the chart's going up.

01:47I honestly thought it was going to be Workday as well.

01:51I thought Dell too.

01:52And I tweeted out, what I tweeted out

01:53was the five possible candidates that I thought

01:55was APO, Workday, Palantir, Dell, and LNG,

02:00which is Schenier Energy.

02:01I kind of thought Dell was going to go.

02:04I felt like Dell.

02:05And then I thought it was going to be Workday and Dell.

02:07Palantir does go.

02:08So Palantir finally goes in.

02:10They're listening to social media

02:11now because they were all cheering.

02:13Everybody's going crazy on Palantir

02:14because this is a very loved stock in social media.

02:17It is.

02:18But it's funny.

02:19Workday just gets crushed again, down another seven bucks here

02:22because it didn't go in.

02:24So if you're playing these ads,

02:26it's not always just like a slam dunk.

02:28Okay, I'm going to buy.

02:29It's probably going in.

02:30Because when it doesn't go in

02:31and it's expected to go in, they hit it hard.

02:35And what's the official date that they're going in?

02:39I didn't even look that up.

02:40It doesn't matter.

02:41And I mean,

02:42And they move off the bat.

02:43They move on the announcement.

02:44They move off the bat.

02:45They don't typically.

02:47And again, do you have the date, AB?

02:51On that day,

02:52there's usually is some arbitrage opportunities

02:54on the close on that day.

02:56So I shouldn't say it doesn't matter,

02:58but the big move happens on the announcement.

03:02Big move for Dell.

03:03And boy, you had all that consolidation at 110.

03:07Look at that.

03:08Just kind of like the market.

03:08Like, are we going to hold 110?

03:09We're not going to hold 110.

03:11Oh, we close at 102.

03:13Oh, we're back at 110.

03:15We even got over 110 there.

03:17We got into 111 hand.

03:19Nope.

03:20110.

03:2088.

03:21Man, now you're three bucks away from that.

03:23I don't know.

03:24I just kind of feel that you're even a ways away

03:28from a double top.

03:29I mean, maybe you get this 108.

03:32I think what's key for you traders in Dell,

03:34log Dell today,

03:36is to clear that high from Thursday and Friday,

03:38108.21, 108.30,

03:41and get a bid.

03:42Get a bid up there.

03:44If not, there's a long way back down to the close.

03:46You look like you have some scalpers

03:49bidding at the 107 area,

03:50perhaps taking off some shorts.

03:53Palantir has a double dose of good news.

03:55A little bit of AI talk.

03:57They got an AI contract,

03:59making a new high of the move.

04:00This is a love stock, 33.18.

04:04So not too far away from that.

04:06Keep an eye on holding 33 in Palantir.

04:09Workday, maybe go down and fill the gap.

04:12You got some work to do on the downside here.

04:14The top of the big gap up day is 236.74.

04:19That's still 10 bucks away.

04:20AAL is not really moving off this.

04:22No, AAL is in the gutter.

04:24Still have a small position,

04:25a long-term portfolio, I know it.

04:27Yeah.

04:29And anything, any other,

04:31did I cover all those that we're getting?

04:32Eerie, did you do Eerie too?

04:34Oh, it's hard to do Eerie because-

04:36Yeah, this stock's been a monster though.

04:38I mean, not on anybody's radar,

04:40I don't think for the S&P ad,

04:42but it's been a monster.

04:44It's an insurance company.

04:46Oh, there you go.

04:49And then getting the boot, man, Etsy.

04:54What a disaster this stock,

04:56a quiet, epic disaster this stock has been.

04:59The darling of COVID and then, you know,

05:02the run-up even after COVID,

05:04like it was even hanging on,

05:05it was $300 a year after COVID.

05:07It was so strong.

05:08And then kaplooey, I'll say it for you, Joel,

05:12it's fallen and it just keeps falling.

05:15And you are now at four-year lows here on Etsy here.

05:19And, you know, obviously, you know,

05:21just getting back to where it's a 51.45

05:23would be a four-year low or three-year low.

05:26It has been an epic disaster here.

05:28And what this tells you, again,

05:30is valuation matters in the long run, folks.

05:33It doesn't matter when the story is hot.

05:35Matters zero.

05:36Like people who trade on valuation

05:40and the story is hot don't know what they're doing.

05:43Story is hot, don't worry about valuation.

05:45But when the story cools off,

05:46when the momentum cools off,

05:48that's when valuation matters.

05:50And Etsy was always trading at a nosebleed valuation.

05:53And really to a certain extent, it still is.

05:55It's come down, but it's 24 times current earnings.

05:58So now it's gotten a lot more reasonable.

05:59Only 14 on a forward basis,

06:01but I don't know if I trust that 14 on a forward basis

06:03because this company has not been firing

06:04on all cylinders here.

06:06Yeah, like it's one thing when you got, you know,

06:08companies firing on all cylinders

06:10to look at those forward multiples,

06:11but sometimes those estimates can come down, you know,

06:13when they're not firing on all cylinders

06:15because analysts were all excited.

06:16So it's actually quietly kind of went

06:18from a growth stock to a value stock,

06:20but when you're trading 60, 70, 80 times earnings,

06:23make sure that story stays hot.

06:25The first indication that you get the growth slowing,

06:28get the hell out.

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