Sandisk (SNDK) S&P 500 Inclusion Analysis: Market Impact & Risk Assessment

On 2025-11-25 (EST), Sandisk (SNDK) was announced as the new addition to the S&P500 index, replacing Interpublic Companies Group (IPG) which is being acquired by Omnicom. This news triggered a

following a . Key context:

• SNDK beat Q3 2025 earnings/sales estimates on Nov 6.
• Morgan Stanley raised its price target to
  $273
  (from $263) with an Overweight rating.
• The index change took effect pre-market on Nov 28.

: [0], [2]

SNDK’s stock price responded sharply:

• Nov24
  : +10.15% gain to close at $226.96.
• Post-announcement
  : Minor pullbacks (3.46% Nov25,4.85% Nov26) but closed at
  $223.28
  on Nov28.

: [1]

The inclusion amplified exceptional performance:

• 1-month
  : +14.02%
• 3-month
  : +325.54%
• YTD
  : +520.22%

: [4]

While the Technology sector posted a

, SNDK outperformed significantly—indicating idiosyncratic upside.

: [3]

• Buy ratings
  : 81.8%
• Consensus target
  : $217.50 (2.6% below current price)

: [4]

Metric	Value
Current Price	$223.28 (+3.83% day)
Market Cap	$32.43B
Q3 EPS	$1.22 (38% beat)
Q3 Revenue	$2.31B (7% beat)
TTM Net Margin	-22.37%
TTM ROE	-17.51%

: [0], [4]

• Nov28 volume:
  13.37M
  (26% above avg)

: [1]

• Sustainability of recent profitability (Q3 EPS $1.22 vs TTM losses).
• Impact of index fund buying post-inclusion.

• Bull Case
  : Index inclusion, earnings beat, Morgan Stanley’s target.
• Bear Case
  : Negative TTM metrics, consensus target below current price.

1. Profitability
   : TTM net margin (-22.37%) indicates ongoing challenges.
2. Valuation
   : Consensus target ($217.50) is below current price.
3. Volatility
   : 520% YTD gain may lead to pullbacks.
4. Geopolitical
   : China accounts for
   27.7%
   of revenue.

: [4]

[0] User’s Event Input
[1] Stock Daily Prices Tool
[2] Ticker News Tool
[3] Sector Performance Tool
[4] Company Overview Tool