JPMorgan Chase: SpaceX Inclusion in Nasdaq 100 Index Could Trigger $4.3 Billion Passive Inflows

BlockBeats News, June 27th, Nasdaq has confirmed that SpaceX (SPCX) will be added to the Nasdaq 100 Index on July 7th, potentially triggering a wave of passive fund inflows. Inclusion in an index usually boosts the stock price as ETFs tracking the performance of the index need to buy the newly added company's shares. JPMorgan Chase estimates that SpaceX's inclusion in the Nasdaq 100 Index could result in $4.3 billion of passive fund inflows.

SpaceX made its Nasdaq debut on June 12th. To attract more companies to list in the U.S., Nasdaq, along with index providers such as FTSE Russell and MSCI, had previously relaxed some of the inclusion criteria, including profitability, number of days since listing, and tradable shares. SpaceX has fluctuated between significant losses and minor profits over the past three years, with a net loss of $4.9 billion last year.

Michael Field, Chief Equity Market Strategist at Morningstar, stated, "Clearly, there is significant market demand, which is why they quickly included it in the index." He added that while many may find this development satisfactory, some fund managers and skeptics may not necessarily agree, with Morningstar believing the stock is overvalued. Investors usually gain broader market exposure to such stocks through funds tracking the Nasdaq 100 Index, such as those under Invesco like QQQ and QQQM. Additionally, major language model companies like OpenAI and Anthropic are also expected to file for IPOs this year or next year, seeking valuations exceeding $1 trillion.

However, S&P Global announced this month that it will not adjust the requirements for SpaceX's entry into major indices like the S&P 500 and will consider its inclusion in relevant indices only at least 12 months later.