SpaceX weighting in Nasdaq 100 set to more than double - Bloomberg

SpaceX is poised to gain a substantially larger representation in the Nasdaq 100 index later this month, a development that could prompt billions of dollars in investments from funds that track the index, according to Bloomberg. The company's weight in the index is anticipated to rise from approximately 1.28% to around 2.82%, based on pro forma data from Nasdaq's Global Index Watch obtained by Bloomberg.

The exact weight will be confirmed later this month. Investors anticipate this change to result in billions of dollars in purchases by index funds and exchange-traded funds that follow the Nasdaq 100. Among the most impacted funds is the Invesco QQQ Trust Series 1, which manages approximately $481 billion in assets. Since SpaceX's inclusion in the Nasdaq 100 in July, the company's shares have faced numerous lockup restrictions, preventing them from being widely traded on the open market.

This limited its free float and, consequently, its weighting in the index. Nasdaq recently modified its guidelines to permit recently listed large-cap companies to join the benchmark faster and eliminated a prerequisite that at least 10% of their shares be freely tradable. As the lockup restrictions lapse, more SpaceX shares have become publicly available, boosting the company's free float and enabling it to claim a larger slice of the Nasdaq 100.

This adjustment could also amplify SpaceX's impact on the technology-heavy index's performance once the revised weight is implemented. There is potential for additional modifications. Extra SpaceX shares are slated to exit lockup, which may lead to a further increase in the company's index weighting. As of the latest data, SpaceX shares were trading at $151.21, marking a 2.04% increase.