QQQ ETF Performance Update: Moderate Buy Rating with Upside Potential

The Invesco QQQ ETF is up 0.34% over the past five days and 10.57% year-to-date. According to TipRanks' analyst consensus, QQQ is a Moderate Buy with an average price target of $609.55, implying an upside of 7.88%. The ETF's five holdings with the highest upside potential are AppLovin, Micron Technology, Lululemon, Adobe Systems, and Atlassian Corporation.

The Invesco QQQ ETF (QQQ) has shown robust performance, rising 0.34% over the past five days and 10.57% year-to-date as of July 2, 2025. According to TipRanks' analyst consensus, QQQ is a Moderate Buy with an average price target of $609.55, implying an upside of 7.88% [1]. The ETF's Smart Score of seven suggests it is likely to perform in line with the broader market.

Among QQQ's holdings, the five with the highest upside potential are AppLovin (APP), Micron Technology (MU), Lululemon (LULU), Adobe Systems (ADBE), and Atlassian Corporation (TEAM) [2]. These companies are positioned to benefit from the ongoing growth in technology, e-commerce, and software sectors.

In addition to its strong performance, QQQ has also seen a significant increase in assets under management. In the second quarter of 2025, the ETF's assets under management jumped 19% to $353 billion, making it one of the five largest ETFs in the world. This growth is a testament to the ETF's continued popularity and investor confidence [2].

However, it is essential to consider the potential downside risks. The ETF's five holdings with the greatest downside potential include Palantir Technologies (PLTR), Advanced Micro Devices (AMD), Fastenal (FAST), Coca-Cola Europacific Partners (CCEO), and KLA Corporation (KLAC) [2]. These companies face various challenges, such as regulatory risks, technological disruptions, and industry-specific headwinds.

Invesco has also filed papers with the Securities and Exchange Commission (SEC) to change the operational structure of the QQQ from its current unit investment trust to an open-ended ETF. If approved, this change could lead to higher revenue for Invesco, potentially resulting in earnings accretion [2]. However, this transition is still pending regulatory approval and may face delays.

In conclusion, the Invesco QQQ ETF presents a compelling investment opportunity with strong upside potential. However, investors should also be aware of the potential downside risks and keep an eye on the regulatory developments related to the ETF's operational structure.

References:
[1] https://www.tipranks.com/news/qqq-etf-news-7-25-25
[2] https://www.ainvest.com/news/invesco-qqq-etf-outlook-moderate-buy-upside-potential-2507/