Analysis: SpaceX May See Over $10 Billion in Passive Net Buying, Weight in Nasdaq Could Rise

Odaily News: SpaceX's stock price has recently been fluctuating within a narrow range, but with the Nasdaq 100 index's quarterly rebalancing later this month, a new wave of buying may soon arrive. Due to lock-up restrictions, SpaceX's free float is relatively low, so its current weight in the Nasdaq 100 is only 1.25%, ranking 19th. Despite its market cap exceeding $2 trillion, it ranks sixth among the index's constituents.

After the next index rebalancing, SpaceX's weight is expected to increase. The related adjustments will be announced after the close on Friday and take effect on September 21. Part of the reason is that over 1 billion shares have already been unlocked, raising SpaceX's free float from less than 10% of total shares outstanding shortly after the IPO to nearly 30%.

According to a report released on Tuesday by JPMorgan Securities strategists including Min Moon, after the rebalancing, SpaceX's weight could reach 1.51%, leading to approximately $12.4 billion in passive net buying of SpaceX stock by index funds and ETFs. Nasdaq data shows that as of the end of the second quarter, about $1.7 trillion in assets tracked the Nasdaq 100, including the Invesco QQQ Trust Series 1 exchange-traded fund, widely known by the ticker QQQ. (Advisorperspectives)