8d (edited) • General discussion
SpaceX is going into Nasdaq 100 index after the close tonight.
After the close tonight SpaceX will be added to the Nasdaq 100. I just want to put some numbers on it for you if you take the total assets that track the Nasdaq 100 it is a total of $800 Billion. Out of that total the estimated forced purchase of SpaceX is $4.3 Billion. Not a crazy amount but a great start for a new IPO. The funds will be forced to buy.
At this point SpaceX’s weight in the Nasdaq 100 will be less than 1% at first. The funds will have to sell other constituents in the index to create space but the impact of that selling will be spread out over many names in the index.
We have never seen something like this happen so quickly, at this scale, after an IPO. Several months ago Nasdaq altered its rules to allow for a fast tracking of mega-cap companies to its flagship index. Instead of waiting months with a double didget % float, companies that would have a top 40 market cap can now be included after just 15 trading days with just a small sliver of a float.
SpaceX’s weighting in the index will now grow as its float does. That will happen as soon as the companies lock ups start rolling off. Which could happen next month.
Traders have already front run this move. It’s already reflected in the stock price.
Side note* I just noticed that Meta is trading at only 15 times and growing at 20%. If anyone has any opinions on any of these please share.
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SpaceX is going into Nasdaq 100 index after the close tonight.
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