In just 10 days, on June 22, one of the last NASDAQ 100 old school company will leave the index. No one actually knows what was UAL stock doing there in the first place since it is as far as it can be from the computer hardware and software niche.
The company that is going to kick the UAL from the Nasdaq 100 index is one of the best performers during the coronavirus crisis, DocuSign (NASDAQ:DOCU) and this is probably going to drive the DOCU market cap up, maybe to $200 per share.
On the other side, we have United Airlines (NASDAQ:UAL) which is such a volatile company for the last 3 months that it became one of the most popular stocks among Robin Hooders. Typical Robin Hooder rides the waves and switch stocks 24/7. If they see that share price of some company is going down, they are selling it. If they see the shares are going up they are buying it. And that is exactly what is going on with UAL shares as of lately. On Thursday United Airlines lost some 20% and on Friday gained back those 20%. A perfect stock for day trading and speculators. UAL stock is now in top 15 most owned stock at Robin Hood app.
But how will this change affect UAL stock price?
I am expecting that on a day that UAL is kicked out of Nasdaq 100 index it will be already too late to sell those shares at a good price. Have in mind that the change will happen prior to market open on Monday, June 22. So, already on Friday, June 19, you will need to make your moves. Either hold or sell. Maybe I am wrong, but something is telling me that the fear will spread fast via Twitter and Reddit (places where Robin Hooders prefer to do DD) once everyone realize that UAL is not the part of the prestige index anymore.
On the other hand, maybe I am wrong but year-to-date UAL lost more than 55% of its value. Are you ready for another financial blow?