Odaily Planet Daily reports that SpaceX’s stock has recently been trading in a narrow range, but new buying pressure may emerge soon as the Nasdaq 100 Index undergoes its quarterly rebalancing later this month. Due to lock-up restrictions, SpaceX has a relatively low free-float ratio, resulting in a weight of only 1.25% in the Nasdaq 100 Index, ranking it 19th. Despite this, its market capitalization exceeds $2 trillion, placing it sixth among all index components.
After the next index rebalancing, SpaceX’s weight is expected to increase. The related adjustments will be announced after Friday’s market close and take effect on September 21. One reason is that over one billion shares have now been unlocked, raising SpaceX’s free-float ratio from under 10% shortly after its IPO to nearly 30%.
According to a report released on Tuesday by J.P. Morgan Securities strategists including Min Moon, SpaceX’s weight could reach 1.51% after rebalancing, prompting passive net purchases of approximately $12.4 billion in SpaceX shares by index funds and ETFs. Nasdaq data shows that, as of the end of the second quarter, approximately $1.7 trillion in assets tracked the Nasdaq-100 Index, including the Invesco QQQ Trust Series 1 ETF, widely known by its ticker symbol QQQ. (Advisorperspectives)