SpaceX Makes Debut On NASDAQ-100, Is It Time To Buy The Stock?

SpaceX, Elon Musk’s brainchild, has now officially joined the Nasdaq-100 on July 7, CNBC reported, marking another milestone just weeks after its historic initial public offering (IPO). With this move completed, questions are now being raised as to whether the aerospace giant's rapid ascent has created a buying opportunity or pushed the stock too far, too fast. Nevertheless, the company's inclusion in one of Wall Street's most closely watched technology indexes is expected to trigger billions of dollars in passive fund buying while increasing exposure among millions of ETF investors.

SpaceX Joins The NASDAQ-100 As Institutions Make Their Move

The inclusion in the Nasdaq-100 comes less than a month after SpaceX completed the largest IPO in US history, raising approximately $75 billion at an IPO price of $135 per share. The stock opened at $150, closed its debut session near $161, and quickly surged to an all-time high of approximately $225.64, representing a gain of nearly 67% from its IPO price before retreating amid broader technology-sector volatility.

Wall Street’s moves show that it remains largely optimistic about the company's long-term prospects. Major investor bets include reusable rockets, Starlink satellite internet, artificial intelligence initiatives, and future space infrastructure. The latest milestone actually places SpaceX among the 100 largest non-financial companies listed on Nasdaq. Unlike traditional index additions that can take months, SpaceX qualified under Nasdaq's revised fast-track rules just 15 trading days after its June 12 listing, making it one of the quickest additions to the Nasdaq-100 in history.

The inclusion matters because more than 200 investment products tracking the Nasdaq-100 collectively manage over $800 billion in assets. Every index fund and ETF that tracks the benchmark must now purchase SpaceX shares to mirror the index. This has actually created an estimated $4.3 billion in automatic buying demand.

However, despite boasting a market capitalization exceeding $2 trillion, the company's initial weighting in the Nasdaq-100 is expected to be just around 1.3%. This is because only a small percentage of shares are publicly available for trading. This limited public float has been one of the major reasons behind the stock price’s rally, and it has also contributed to heightened volatility since the IPO.

Why This Could Be A Bullish Opportunity

Wall Street has recommended SpaceX’s addition to the index despite how young it is. Several major investment banks, including Morgan Stanley, Goldman Sachs, JPMorgan, RBC Capital Markets, and UBS, have already shared bullish predictions for the asset. SPCX stock price targets vary considerably, ranging from roughly $190 to as high as $800. But what all of them have in common is that they expect the SpaceX stock to keep rising.

On the bullish side, the company operates in industries with enormous long-term growth potential. Starlink continues expanding globally, commercial launch demand remains robust, government contracts provide recurring revenue, and Starship could eventually transform satellite deployment, lunar missions, and deep-space exploration. If it continues on this path, then SpaceX could become one of the defining infrastructure companies of the artificial intelligence era. 

However, the stock has already experienced significant swings since listing, showing that it’s not all just bullish expectations for the stock price. Following its record high, SpaceX saw its stock price decline sharply as investors took profits. Another consideration is the relatively small public float. Because fewer than 5% of outstanding shares are currently trading publicly, the stock may remain more volatile than many other mega-cap companies. Future lock-up expirations allowing additional insider selling could also increase supply in the market and dilute the price. 

Still, many institutional investors view the current SpaceX price as a rare opportunity to own the stock. With billions of dollars now flowing into index funds that automatically own SpaceX, the company has cemented its place among the world's most influential publicly traded technology firms. However, investors should also remember that inclusion in the Nasdaq-100 does not guarantee future gains. While the index inclusion often generates short-term buying pressure, long-term performance ultimately depends on the company’s ability to continue being profitable.