Harley-Davidson Is No Longer In The Big Leagues [View all]
Harley-Davidson Is No Longer In The Big Leagues
Erik Shilling
Tuesday 8:50PM Filed to: HARLEY-DAVIDSON
The S&P 500 is usually considered the best measure of how the American economy is doing. The index includes companies like Chevron, Microsoft, and JPMorgan Chase, companies worth billions that are intended to be representative of the American economy. The S&P 500 also includes Harley-Davidson, though not for much longer.
On Friday, S&P Dow Jones Indices announced that it was booting Harley and two others from the list, effective June 22. It was doing so, it said, ensure each index more appropriately represents its market capitalization range, which is a nice way of saying that Harley simply isnt a big enough player anymore to be placed alongside Americas biggest corporations.
Harley will now be listed in the S&P Midcap 400, alongside companies like Dicks Sporting Goods, Papa Johns, and Gamestop. Harleys current value is a little under $4 billion, and one requirement to get into the S&P 500 in the first place is to be worth more than double that.
This is all mostly a shot at Harleys pride, as being among the S&P 500 doesnt confer companies with any special privileges, its more just that a committee of people thinks your company is big enough to be there, which Harley, these days, simply isnt.
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