Why Did SpaceX Stock Drop Today?

Yahoo Finance ·

Space Exploration Technologies ( SPCX 5.20% ) was added to the Nasdaq-100 index before the market opened today, so investors might be surprised to see SpaceX shares fall. When a company's stock is added to an index, it can rise due to passive buying by mutual funds and exchange-traded funds (ETFs) that are required to hold the entire index. So why were SpaceX shares down by 5.2% at 12:45 p.m. ET today? The Nasdaq-100 tracks the 100 largest non-financial companies listed on the Nasdaq Stock Market exchange . But even the funds and ETFs that buy SpaceX stock once it's on the exchange aren't really buying a large quantity of the company. Consider this: SpaceX raised about $86 billion from its public share offering. But the company was valued at $1.8 trillion at the IPO price. That's less than 5% of the company available to the public. Elon Musk owns much of the balance, maintaining about 46% ownership. Other early investors, institutions, and employees own the rest.

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