"The company is a lot more seasoned now," Francis Gaskins of IPO Desktop Premium, a website devoted to IPOs, said in a report. Being in the Nasdaq-100 "takes away some of the stain of the botched IPO."
Investors and fund managers are watching Facebook shares, as the company will be included into the Nasdaq-100 Index the morning of December 12, 2012. This also means the stock will be included in the $30.9 billion PowerShares QQQ (QQQ). The fund will take the place of First Trust Dow Jones Internet Index Fund (FDN) as the largest ETF to hold the company, reports Benzinga.
The inclusion within the tech index is a major feat for Facebook, which has struggled since the May 18 IPO that hit the market with a loud thud. The Nasdaq-100 is considered a big-time, big-name technology index, which also holds heavyweights such as Apple (AAPL) and Google (GOOG), reports Financial Review.
Shares of Facebook are currently trading around $27.71, which is 44% higher than the low of $19.21 per share seen on November 9. The stock has gained value in recent weeks despite concerns about a series of post-IPO lockup expirations that released hundreds of millions of shares for sale on the open market.
"Inclusion in the Nasdaq-100 should be a positive for (Facebook), since a bunch of index funds and ETFs now have to buy to maintain a match with the benchmark," Joseph Bonner of Argus Research said in email to USA Today.
Tisha Guerrero contributed to this article.
Full disclosure: Tom Lydon's clients own QQQ, AAPL, FB and GOOG.