Nasdaq Fast-Tracks SpaceX IPO into Nasdaq-100
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: NASDAQ.COM
- Rule Change: Nasdaq has altered its rules to fast-track large IPOs into the Nasdaq-100 index, now requiring only a top 40 valuation in the first week to qualify, significantly lowering the entry barrier and potentially attracting more high-value companies.
- SpaceX Market Impact: SpaceX is set to debut on June 12 as the largest IPO in history with a valuation of $1.77 trillion; however, its free-float market cap may only be around $75 billion, but with Nasdaq's 3x multiplier, its index weight is expected to be approximately $225 billion.
- Investor Implications: Once SpaceX is added to the Nasdaq-100, investors in the Invesco Nasdaq-100 ETF (QQQM) will automatically gain exposure, although SpaceX is expected to account for less than 1% of the fund, which could affect the overall performance of the portfolio.
- Competitor Response: S&P Dow Jones Indices considered a similar fast-track rule but backed down due to significant backlash, indicating Nasdaq's more aggressive strategy in attracting emerging tech companies, which may further solidify its market position.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 390.340
Low
500.00
Averages
631.36
High
678.00
Current: 390.340
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company’s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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