SpaceX joins Nasdaq‑100, sparking billions in passive fund buying

SpaceX was added to the Nasdaq‑100 on July 7, becoming one of the fastest IPOs to enter the technology‑heavy index after a rule change that allows large newly listed companies to qualify for “fast entry.” The inclusion forces index‑tracking ETFs such as Invesco’s QQQ and QQQM, which together manage roughly $8 billion, to buy the stock, an effect estimated by JPMorgan to generate about $4.3 billion of passive inflows.

Wall Street analysts began coverage as the quiet period ended, with Morgan Stanley, Goldman Sachs, RBC, Bernstein and others issuing buy or overweight ratings and price targets ranging from $225 to $300. Despite the bullish outlook, the share price has slipped back toward its IPO level, trading around $150‑$160 after an early‑day 6 % decline.

The IPO raised roughly $75 billion, valuing SpaceX at about $2.1 trillion and briefly making CEO Elon Musk the world’s first trillionaire. The company’s limited free‑float and heavy insider ownership mean the stock could remain volatile even as the index‑driven buying offers short‑term support. Long‑term performance will depend on SpaceX’s core businesses – satellite internet, reusable launch vehicles and its expanding AI initiatives.