I am not sure if there was a speculation about possibility of this index inclusion in the market after SHOP listed New York, as its Principal Executive Office alongside Ottawa in a recent SEC filing.
Do you believe that stock should react well to the announcement over next several trading sessions ?
What would be the estimated demand of its shares from all the ETF's/MF's following these indices ?
Thank You
There was speculation when SHOP moved offices, and index committees also have relaxed their rules somewhat on foreign companies' inclusion in indices. Shopify's inclusion in the Nasdaq 100 Index will require index funds tracking the index to purchase approximately 10.44 million shares of SHOP stock. This estimate is based on Shopify's market capitalization relative to the Nasdaq 100's total market cap and its current shares outstanding. Note this is just an estimate. Typically, stocks move nicely on this news and settle in. But because it was rumoured, and the stock is very volatile anyway, we think its earnings and the general market for growth companies will still outweigh any index impact. But we would certainly view it as net positive for the stock overall.