Mega-cap tech stocks are so big that the Nasdaq 100 is forcing a shake-up

📆 7/11/2023 11:41 PM
📰 BusinessInsider

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Mega-cap tech stocks have gotten so big that the Nasdaq 100 is about to undergo a 'special rebalance' to address overconcentration

The 2023 rebalance announcement was"driven by Tesla's week-ago rally, causing the constituents weighting > 4.5% to exceed 48% of the index.

Their collective weight will be down-sized to 40%," Harvey said in a recent note, adding that the biggest losers will be Apple and Microsoft, which should see their weight fall by almost 2% each."We believe this liquidity event dents, but does not break, the longer-term uber-cap trend... as long as the economy remains in a malaise , rather optimistic valuation premiums and growth estimates are difficult to refute," he said.

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Market heavyweights dip ahead of Nasdaq 100 rebalanceShares of Apple , Microsoft and other heavyweight companies dipped on Monday after Nasdaq Inc said it would rebalance its Nasdaq 100 index to address the benchmark's 'overconcentration.'
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