Alphabet Is Joining the Dow Jones Industrial Average. 3 Surprising Reasons Why SpaceX Could Be Next.

On June 23, S&P Dow Jones Indices announced that Alphabet would beryllium replacing Verizon Communications in the Dow Jones Industrial Average.

Since 2020, 7 of the Dow's 30 components person changed, including the additions of Honeywell International, Salesforce, Amgen, Amazon, Nvidia, Sherwin-Williams, and present Alphabet, and the deletions of RTX, ExxonMobil, Pfizer, Walgreens Boots Alliance, Intel, Dow, and Verizon.

Missed Nvidia successful 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" awesome flashed for a little-known chipmaker called Nvidia. For the archetypal clip successful years, that aforesaid "Total Conviction" awesome is flashing for a institution 1/100th the size of Nvidia. Continue »

Space Exploration Technologies (NASDAQ: SPCX) -- different known arsenic SpaceX -- has lone been nationalist for a mates of weeks. But the institution has a beardown lawsuit for joining the Dow 1 day. Here are 3 reasons SpaceX could yet articulation the Dow, and whether the maturation banal is simply a bargain now.

1. Industry enactment

With conscionable 30 components, each Dow banal represents definite industries and a banal marketplace sector. The strongest lawsuit for SpaceX joining the Dow is that it is the undisputed person successful the commercialized abstraction motorboat manufacture -- conducting 82% of U.S. abstraction launches.

If SpaceX tin standard its Starlink web of broadband and mobile satellites, it could marque a lawsuit for joining the Dow 1 day. And coincidentally, that conception could 1 time surpass the web of the precise institution that conscionable got booted from the Dow -- Verizon.

But Starlink is simply 1 facet of SpaceX's concern thesis. The bigger prize is artificial quality (AI) done SpaceX's ownership of xAI and its extremity to motorboat millions of AI compute satellites successful space. To enactment that vision, SpaceX plans to physique a monolithic spot manufacturing works called Terafab and an integrated AI outer installation called Gigasat successful Texas. CEO Elon Musk has an awesome way grounds unlocking manufacturing efficiencies with Tesla (NASDAQ: TSLA) -- but AI compute satellites volition beryllium acold larger than Starlink satellites and transportation acold heavier payloads. To apical it each off, SpaceX could look absorption from astronomers and nighttime entity viewers if it launches droves of AI compute satellites into Sun-synchronous orbit, causing unprecedented airy pollution.

Challenges aside, SpaceX is connected the cusp of becoming an manufacture person successful abstraction exertion for decades to travel -- from connectivity and AI satellites to launching payloads and possibly adjacent interplanetary travel. If SpaceX tin crook these large ideas into sustainable businesses for aboriginal growth, it stands a bully accidental of 1 time being added to the Dow.