SpaceX Joins Nasdaq-100 on July 7. Its Stock is Still Not a Buy

SpaceX's Nasdaq-100 addition on July 7 forces billions in automatic passive fund buying, but mechanical demand doesn't reflect underlying business value.

Lockup expiration, a $60 billion all-stock acquisition, and $25 billion in new debt create compounding headwinds just as index buying fades.

History shows large IPOs often offered far better entry points after excitement faded, once revenue, earnings, and cash flow replaced momentum as price drivers.

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The biggest IPO in history is about to reach another milestone, but smart investors shouldn't confuse forced buying with lasting value.

On July 7, SpaceX (NASDAQ:SPCX) will officially join the Nasdaq-100 after the Nasdaq exchange rewrote its eligibility rules to allow newly public mega-cap companies into the index without waiting through the traditional seasoning period. That decision guarantees billions of dollars of passive buying from index funds, ETFs, mutual funds, and institutional investors that track the benchmark.

While that demand could give the stock a short-term lift, it doesn't

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/stocks/articles/spacex-joins-nasdaq-100-july-124024457.html)