Analysis: SpaceX Likely to See Over $10 Billion in Passive Net Buying; Weight in Nasdaq 100 Expected to Rise

According to Odaily, SpaceX's stock price has recently been fluctuating within a narrow range, but a new wave of buying may arrive soon as the Nasdaq 100 Index undergoes its quarterly rebalancing later this month. Due to lock-up restrictions, SpaceX has a relatively low proportion of freely floating shares, which currently gives it a weight of only 1.25% in the Nasdaq 100 Index, ranking 19th. Despite its market capitalization exceeding $2 trillion, placing it sixth among the index's constituents.

Following the next index rebalancing, SpaceX's weight is expected to increase. The adjustments will be announced after the market close on Friday and take effect on September 21. This is partly because more than 1 billion shares have already been unlocked, raising SpaceX's free-float shares from less than 10% of total shares outstanding shortly after the IPO to nearly 30%.

According to a report released Tuesday by J.P. Morgan Securities strategists including Min Moon, SpaceX's weight could rise to 1.51% after the rebalancing, which would trigger approximately $12.4 billion in passive net buying of SpaceX shares by index funds and ETFs. Nasdaq data shows that as of the end of the second quarter, approximately $1.7 trillion in assets were tracking the Nasdaq 100 Index, including the Invesco QQQ Trust Series 1 exchange-traded fund, widely known by its ticker QQQ.