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SpaceX shares remained stable in pre-market trading on Monday, despite the announcement of its official inclusion in the Nasdaq 100 index on July 7. This move, historically considered a major factor supporting stock prices, saw investors not display their usual enthusiasm. The stock rose by approximately 1% in pre-market trading, after closing Friday’s session at $153.23 , a slight increase of just 23 cents. This puts it close to its opening level after its initial public offering, suggesting that the strong rally that followed the listing is beginning to lose momentum.
Over the past week, SpaceX shares have fallen by about 17% , reflecting the fading optimism that accompanied the initial public offering, as investors shift to assessing the company’s fundamentals rather than relying on the momentum generated by the listing.
Billions of dollars in investment flows are expected to join
Inclusion in the Nasdaq 100 is a significant event, as exchange-traded funds (ETFs) and mutual funds that track the index will be obligated to purchase shares of the company, a phenomenon known as passive inflows, which automatically follow indices without individual investment decisions being made.
According to JPMorgan estimates, SpaceX’s inclusion in the index could attract investment inflows approaching $4.3 billion . However, investors are still wondering whether these inflows will provide long-term support for the stock, or simply lead to a temporary price surge.
The changes made by the Nasdaq exchange in recent years to the rules for joining the index, which included relaxing some of the profitability, trading period and free float requirements, have also contributed to enabling fast-growing companies to join the major indices sooner than before.
Joining the S&P 500 is still postponed.
Despite this move, SpaceX still has a long way to go before joining the S&P 500 index. S&P Global confirmed it will not consider including the company in the index until at least 12 months have passed since its shares began trading on the public markets, according to the index’s rules. Meanwhile, SpaceX’s stock market experience is beginning to cast a shadow over the plans of other major AI companies. Reports indicate that OpenAI is considering postponing its initial public offering until 2027, following the sharp fluctuations SpaceX’s stock experienced immediately after its listing.
Analysts believe the market has not yet decided how to value SpaceX, as the debate continues over whether the stock represents a long-term growth story, or whether it has temporarily benefited from investor enthusiasm for technology and artificial intelligence companies.
While inclusion in the Nasdaq 100 represents a significant milestone for the company, investors appear to be more focused on SpaceX’s ability to deliver sustainable growth and strong earnings, rather than simply being buoyed by positive news regarding its inclusion in major indices.
