"People" in this instance aren't always informed buyers. Sometimes they're buying an index fund because they don't have the time to research individual stocks and sometimes it's their pension investing.
The normal seasoning period is there for a reason. There is a massive downside to premature inclusion of a stock that is initially overvalued and then settles to a reasonable/sustainable value.
> There is a massive downside to premature inclusion of a stock that is initially overvalued
Define “massive”. SpaceX is only 1.2% of QQQ.
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> Sometimes they're buying an index fund because they don't have the time to research individual stocks and sometimes it's their pension investing
Then they should buy a broad-market fund. The kinds in which new issues are a tiny fraction or, if it’s following something like the S&P 500, not included at all. Following the Nasdaq 100 and then complaining it has too many risky tech plays is a bit silly.
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