Facebook (NASDAQ:FB) next week will become the newest member of the Nasdaq-100 Index, which includes 100 of the biggest non-financial stocks listed on the Nasdaq. FB will take the spot held by Infosys (NASDAQ:INFO) and join marquee tech companies like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Google (NASDAQ:GOOG).
Back in April, the Nasdaq changed its waiting period for the Nasdaq-100 from two years to three months; now, that move seems like it was tailor-made just to snag the Facebook IPO listing.
Exchanged-traded funds based on the Nasdaq-100 — such as the PowerShares QQQ Trust (NASDAQ:QQQ) — have about $50 billion in assets, which means Facebook should see some added demand in the short-term. Though judging by today’s fractional move upward in shares, it seems like FB’s eventual inclusion might already have been factored in.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.
A long-time follower of the IPO scene, back in 1999 Tom started one of the first sites in the space called WebIPO. It was a place where investors got research as well as access to deals for the dot-com boom. Tom also wrote the top-selling book, Investing in IPOs. In it, he covers all the aspects of analyzing an IPO, such as reading the prospectus, detecting the risk factors and understanding some of the arcane regulations. But don’t worry — if that process is too intimidating for you, thankfully Tom will do the legwork for you right here in the IPO Playbook blog.
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