Meta Faces Weight Cut in Nasdaq 100’s Special Rebalance
- Index provider releases pro forma guidance for gauge changes
- Broadcom, Adobe, PepsiCo set to see largest weight increases
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When a “special rebalance” of the Nasdaq 100 Index was touched off to curb the dominance of the biggest technology stocks, Meta Platforms Inc. was the only megacap to fall below a crucial threshold for downsizing. Now it seems the social media giant will be pared back anyway.
Meta’s representation in the index is flirting with 4.5%, the key level that six other companies breached when the out-of-cycle adjustment to the gauge was triggered on July 3. That means if the weights of those larger stocks were cut and redistributed to other index members, the Mark Zuckerberg-founded firm would be catapulted to the sort of size that the rebalance was intended to combat in the first place.