Is QQQ Worth Buying After SpaceX's Inclusion in the Nasdaq-100?
SpaceX (SPCX) became part of the Nasdaq-100 index under new fast-track rules, marking a significant milestone as the fastest inclusion ever. Despite its $1.5 trillion market cap, it is only the 24th-largest holding in the index with a weighting of just 1%. This minimal impact means that QQQ (the Invesco QQQ ETF tracking the Nasdaq-100) remains largely unchanged from an investment perspective. The article notes that while tech stocks have seen recent declines, including SpaceX's shares down over 40% from their peak, this correction may present a buying opportunity for long-term investors. The broader market is shifting focus to companies delivering tangible results rather than just innovation-driven optimism. Earnings growth in the sector remains strong despite signs of a potential slowdown. The author suggests that while QQQ's recent dip could be an entry point, it’s important not to overreact to SpaceX's inclusion alone. Investors should consider broader market trends and company fundamentals when evaluating tech investments.
Topics: free-float market cap Invesco QQQ ETF NASDAQ-100 SpaceX