SpaceX set to join Nasdaq 100, paving way for wave of passive buying
J.P. Morgan estimates the move could draw $4.3 billion in passive inflows as funds that track the index buy SpaceX shares.
- On Friday, Nasdaq confirmed it will add SpaceX to its Nasdaq-100 index on July 7, enabling ETFs to purchase shares of Elon Musk's rocket and AI giant, likely boosting its stock price.
- To attract U.S. listings, Nasdaq recently relaxed entry requirements including profitability and post-IPO waiting periods, while index providers FTSE Russell and MSCI adopted similar changes to accommodate high-growth tech firms.
- Morgan estimated the inclusion could draw roughly $4.3 billion in passive inflows; however, Morningstar's Michael Field warned the stock remains overvalued, noting SpaceX swung between losses and profits recently.
- Meanwhile, Wall Street's benchmark index providers confirmed this month they will wait at least 12 months before considering SpaceX, reflecting divergent risk appetites among providers regarding recently listed, high-growth companies.
- Large Language Model makers OpenAI and Anthropic are expected to file for initial public offerings this year or next, targeting valuations of more than $1 trillion, as relaxed entry requirements could facilitate their future index inclusion.
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31 Articles
SpaceX, the aerospace company founded by Elon Musk, will become one of the fastest companies ever included in the Nasdaq-100 index, which is expected to generate a new wave of purchases from passive investment funds, broadcasts CNBC.
SpaceX Joins Nasdaq-100 on July 7. Its Stock is Still Not a Buy
The biggest IPO in history is about to reach another milestone, but smart investors shouldn’t confuse forced buying with lasting value. On July 7, SpaceX (NASDAQ:SPCX) will officially join the Nasdaq-100 after the Nasdaq exchange rewrote its eligibility rules to allow newly public mega-cap companies into the index without waiting through the traditional seasoning period. ... SpaceX Joins Nasdaq-100 on July 7. Its Stock is Still Not a Buy
The Sneaky Way SpaceX, Anthropic, and OpenAI Can Destroy the Trump Bull Market
Key PointsStatistically, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have delivered outsize returns under President Donald Trump.Several index inclusion rules were recently amended, providing mega-initial public offerings (IPOs) with fast-track entry into the Nasdaq-100, Russell 1000, and Russell 3000.Fast entry into major stock indexes is a historical nightmare for Wall Street, which is compounded by investors consistently o…
SpaceX's Active Docking On Nasdaq 100 May Spur $4.3 Billion Passive Bounty
Stocks included in the Nasdaq 100 index get a boost, as exchange-traded funds buy shares of the newly included firms as they seek to replicate the index's performance. J.P. Morgan has reportedly estimated that the entry of SpaceX in the Nasdaq 100 may likely infuse $4.3 billion in passive inflows.
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