SpaceX Expected to Gain Weight in Nasdaq 100, Potentially Drawing Over $10 Billion in Passive Net Buying

On September 8, SpaceX's stock price has recently fluctuated within a narrow range, but with the Nasdaq 100 index undergoing its quarterly rebalancing later this month, a new wave of buying may soon arrive. Due to lock-up restrictions, SpaceX's free-float share ratio is relatively low, so its current weight in the Nasdaq 100 index is only 1.25%, ranking 19th. Despite its market capitalization exceeding $2 trillion, it ranks sixth among the index's constituents.

After the next index rebalancing, SpaceX's weight is expected to rise. The related adjustments will be announced after Friday's market close and take effect on September 21. This is partly because over 1 billion shares have already been unlocked, raising SpaceX's free-float shares as a percentage of total shares from below 10% shortly after the IPO to nearly 30%. According to a report released Tuesday by JPMorgan Securities strategists including Min Moon, after the rebalancing, SpaceX's weight could reach 1.51%, leading index funds and ETFs to passively net buy approximately $12.4 billion in SpaceX shares. Nasdaq data shows that as of the end of the second quarter, about $1.7 trillion in assets tracked the Nasdaq 100 index, including the Invesco QQQ Trust Series 1 exchange-traded fund, widely known by the ticker QQQ.

[TechFlow]