SpaceX Stock Is Down 35% From Its High Just 1 Day After Joining the Nasdaq-100. Is the Dip a Buy?
A spot in the index was supposed to be the catalyst. So why are shares back near their post-IPO low?
Overview
Getting added to the Nasdaq-100 is usually a good day for a stock. Funds that track the benchmark have to own it. And for SpaceX (NASDAQ: SPCX), that meant billions of dollars of forced buying into a company whose public float is only a few percent of its shares.
On paper, that is a lot of demand chasing very little stock.
Details
Yet a day after joining the index on July 7, SpaceX trades about 35% below its high of $225.64, changing hands for less than $147 as of this writing. That is below where the stock started when the company went public in June, in the largest U.S. initial public offering on record. It slipped about 6% in the session right after inclusion, giving back nearly all of its post-IPO gains.
Source
Originally published at www.fool.com.