SpaceX shares slide as it joins the tech-heavy Nasdaq-100
Summary
SpaceX joined the Nasdaq-100 index quickly after its stock market debut, which will lead to more buying of its shares by index-related funds. Despite this, SpaceX’s stock price dropped by 5.4% along with other tech stocks due to concerns about the future growth of artificial intelligence (AI).Key Facts
- SpaceX entered the Nasdaq-100 index less than a month after going public on June 12.
- The Nasdaq changed its rules to allow large companies like SpaceX to join the index after only 15 trading days.
- SpaceX’s stock fell 5.4% on the day it joined the index, following a broader drop in tech stocks.
- The company now holds a 1.34% weight in the Nasdaq-100 index.
- Major brokerages like Morgan Stanley, Goldman Sachs, and JP Morgan gave SpaceX mostly positive evaluations.
- Wall Street analysts expect the Starship rocket to drive large growth, forecasting thousands of launches annually by 2031.
- Some brokerages have neutral or sell ratings, with one setting a low price target of $115 per share.
- Investors believe SpaceX could become a major player in AI computing and satellite internet through Starlink technology.
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