Elon Musk's SpaceX Just Joined the Nasdaq-100. Now What?
Yahoo Finance ·
Space Exploration Technologies ( SPCX 4.51% ) entered the Nasdaq-100 index on July 7, and investors will hope it provides additional support for an already successful initial public offering (IPO). But what does the index inclusion really mean, and what can SpaceX investors expect in the future? The Nasdaq-100 index inclusion does matter. It triggers forced passive buying of the stock by funds (including exchange-traded funds, or ETFs) that track the Nasdaq-100 index. In addition, many actively managed funds may invest only in stocks listed in the Nasdaq-100 index, and others may require holdings in SpaceX stock to meet their fund's weighting requirements. All of this is likely to provide some support for the share price. While this will occur, investors also need to be mindful of periodic bouts of selling as SpaceX's lock-up expiry dates approach. Digging into the company's Securities and Exchange Commission (SEC) filings makes it clear that the potential for periodic supply hitting the market is real. For reference, around 639 million shares were sold at IPO, and SpaceX has 13.17 billion shares outstanding. Two days after the next earnings release Contingent on the share price being more than 30% of the IPO price of $135 "for at least five of the 10 consecutive trading days ending on, and including, the First Earnings Release Date, the second full trading day immediately after the First Earnings Release Date." Two days after the third-quarter earnings release Up to 328.4 million or up to 797.6 million The lower figure is released as outlined, and the upper figure is not Data source: Space Exploration Technologies SEC filings. As you can see, significantly more shares could come to market than were sold at IPO, and that could prove more impactful than the Nasdaq-100 listing.
DYAX Investor Sentiment
Bullish (Long) 47% · Bearish (Short) 53%
328 participants
Related News
- Wall Street Is Bullish on 1 of These Chip Stocks and Bearish on the Other
- Disney's 'Moana' cruises to No. 1 with $43M opening as Pixar, Minions hold strong
- What Is the State Street SPDR Portfolio Developed World ex-US ETF, and Who Should Buy It?
- AI giants shift focus from raw power to lower costs as business spending scrutinized
- $10,000 Invested in Mark Zuckerberg's Meta a Decade Ago Is Worth This Much Today
- Tesla merger with SpaceX won't save investors, top analyst says