According to a Reuters report, JPMorgan analysts expect the inclusion to trigger inflows of up to $4.3 billion into SpaceX shares.
- The company sold less than 5% of its shares through the initial public offering last month.
- SpaceX will formally join the Nasdaq 100 index under Nasdaq’s “Fast Entry” pathway announced in May this year.
- Nasdaq stated in its May update that it will adjust the weight of a company’s shares in its indexes based on changes in its float over time.
Shares of Space Exploration Technologies Corp. (SPCX) were in focus on Monday, ahead of the company’s inclusion in the Nasdaq 100 index on Tuesday.
SpaceX will formally join the Nasdaq 100 index under Nasdaq’s “Fast Entry” pathway announced in May this year, which will result in exchange-traded funds (ETFs) tracking the index buying SpaceX shares at Monday’s closing price to mirror the index's performance.
SpaceX shares were up more than 1% in Monday’s opening trade.
What Retail Traders Think Of SPCX Stock
Retail sentiment on Stocktwits around SpaceX trended in ‘bearish’ territory at the time of writing.
One user believes that SpaceX’s inclusion in the Nasdaq 100 index could push the stock beyond $200, implying a surge of about 22% from current levels.
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Another user expects SPCX stock to rise by 10% to 15% due to the index inclusion.
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JPMorgan Expects $4.3B Inflows Into SpaceX Shares
According to a Reuters report, analysts at JPMorgan expect the inclusion of SpaceX in the Nasdaq 100 index to trigger inflows of up to $4.3 billion.
SpaceX currently has a market capitalization of about $2.1 trillion. The company sold less than 5% of its shares through the initial public offering (IPO) last month.
Nasdaq determines index weights based on a company's free float, capping the weight at three times its float-adjusted market capitalization. It stated in its May update this year that it will adjust the weight of a company’s shares in its indexes based on changes in its float over time.
“This not only preserves investability, but also mitigates the risk of a single-entry point, because the index will effectively add those securities in multiple tranches over time,” Nasdaq stated.
SPCX stock is up 8% year-to-date. The Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM) are up 29% over the past 12 months.
The Procure Space ETF (UFO) is up 74% during this period, while the Tema Space Innovators ETF (NASA) is up 21%.
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