SpaceX will join the Nasdaq-100 on July 7 following its $75 billion IPO in June, the largest public offering on record. The inclusion adds Elon Musk's space and AI-linked company to one of Wall Street's most tracked technology indexes. SpaceX shares rose as high as $225 after the June 12 IPO before falling to $162 last week, leaving the stock down about 28% from its post-listing peak. The Nasdaq-100 entry will bring SpaceX into funds that track the index, including the Invesco QQQ ETF. The company was added under newer rules that allow newly public large-cap companies to enter the index faster than before, with the IPO valuing SpaceX among the largest listed companies in the United States at a reported market capitalization near $2.1 trillion.
SpaceX Enters Nasdaq-100 with Float-Adjusted Weight Below 1%
SpaceX will officially enter the Nasdaq-100 on Tuesday, July 7. The company sold less than 5% of its total shares in the public offering, and employee lockup rules limit how many shares can trade publicly in the months after the IPO. Because of that limited float, Nasdaq will adjust SpaceX's index weight. The company will enter the Nasdaq-100 with a weight below 1%, treating it closer to a $300 billion float-adjusted company. SpaceX is not expected to enter the S&P 500 for at least one year.
Invesco QQQ and Nasdaq-100 Funds Prepare Share Purchases
Funds tracking the Nasdaq-100 hold about $800 billion in assets. The largest of those funds is Invesco's QQQ ETF, which has about half a trillion dollars in assets. Other Nasdaq-100 products, including QQQM and lower-fee funds from State Street and BlackRock, are also part of the passive tracking market. Index inclusion creates automatic demand when funds buy shares at the closing price before entry. The limited float will reduce the amount of SpaceX stock that Nasdaq-100 funds need to buy.
Palantir and Strategy Fell After December 2024 Nasdaq-100 Entry
Palantir entered the Nasdaq-100 on Dec. 23, 2024, but its stock later fell about 25% in the following weeks. Strategy also joined the Nasdaq-100 on Dec. 23, 2024. The Bitcoin holding company had already peaked near $543 in November and now trades near $100, marking a large correction from its high. SpaceX also listed during a strong AI infrastructure trade, as semiconductor, memory, and AI compute stocks had already rallied before the company's IPO. SpaceX will become one of the four Nasdaq-100 companies with Bitcoin holdings. SpaceX (SPCX) shares rose 2.83% to trade at $162, still over $28 higher than its IPO price of $135.
FAQ
When does SpaceX join the Nasdaq-100?
SpaceX will officially enter the Nasdaq-100 on Tuesday, July 7.
What was SpaceX's IPO price and how much did the company raise?
SpaceX raised $75 billion in its June public offering. The IPO price was $135 per share, and shares rose as high as $225 after the June 12 IPO before falling to $162 last week.
How much will Nasdaq-100 funds need to buy SpaceX shares?
Funds tracking the Nasdaq-100 hold about $800 billion in assets. SpaceX will enter with a weight below 1% due to its limited float, treating it closer to a $300 billion float-adjusted company, which reduces the amount of stock that Nasdaq-100 funds need to buy.
