A good index is like a hot nightclub; If you let anybody in, nobody will want to come in anymore.
The S&P 500 knows what we're talking about:
Index giant S&P Dow Jones Indices announced late Monday that companies with multiple share class structures, such as Snap, are not eligible to join the flagship S&P 500 index.
Yeah, sure, this is a "corporate governance issue." We get that co-founders Evan Spiegel and Robert Murphy control almost every single voting share (or at least they did before yesterday), and it is not lost on us that this is very dumb, but we also think that Snap might have been a little more tempting if its post-IPO performance didn't look like this:
Basically, Snap is a way too drunk frat bro trying to get into the club and being denied by a bouncer who cant help notice that Snap's expensive clothes smell of vomit, his pupils are dilated as too look almost black, and he is mumbling something about "Having a rough night." Sure, the bounce is going to say that it's because Snap is wearing sneakers, but we all know it's because Snap is a mess...and also Facebook is already inside and nobody wants any trouble.