SpaceX shares extend slide after Nasdaq 100 entry

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SpaceX shares Nasdaq 100 slide

Highlights

SpaceX stock closes at $148 on Wednesday, down for a second straight day and below its $150 debut price despite Nasdaq 100 inclusion Tuesday.
SpaceX's IPO raised $85.7 billion by offering 555.6 million shares at $135 each, making it one of the largest recent equity raises.
Morgan Stanley initiates SpaceX with an overweight rating and a $300 target; other major brokers set bullish targets between $210 and $239 per share.

Index inclusion and trading performance

As reported by CNBC, SpaceX stock closes at $148 on Wednesday, marking the second consecutive day the shares finish below the company’s first trading price of $150. The aerospace and defense company joins the Nasdaq 100 on Tuesday, less than a month after its June 12 stock market debut, helped in part by revised exchange rules for newly public companies seeking entry into the benchmark.

The addition to the index also forces index funds and exchange-traded funds tied to the Nasdaq 100 to buy SpaceX shares to reflect the new composition. Even with that support, the stock remains below its opening trading level after previously surging in the days following its debut and reaching a closing high of $201.80 on June 16.

Analyst outlook and business expectations

SpaceX’s initial public offering raises a total of $85.7 billion after underwriters exercise the greenshoe overallotment. The company initially offers 555.6 million shares at a set price of $135 each, making the listing one of the largest equity raises tied to a market debut.

Brokerage coverage following the Nasdaq 100 inclusion is mostly positive. Morgan Stanley starts coverage with an overweight rating and a $300 price target, while Bernstein, RBC and UBS also launch with bullish recommendations and targets ranging from $210 to $239 per share.

Supportive analysts cite SpaceX’s lead in reusable rocket technology, launch services and its Starlink satellite internet business, along with the potential for stronger margins across those operations. For future growth, they also point to possible artificial intelligence products and services, including coding tools, competing large language model offerings and orbital data center development, while more cautious views come from MoffettNathanson, which starts with a neutral rating, and CFRA, which recommends selling the shares.

McDonald’s removal from several major Russell growth and defensive indexes highlighted how benchmark changes can quickly shift institutional demand and weigh on a stock. In our earlier article, we noted that the exclusion coincided with softer U.S. customer traffic and persistent technical weakness, keeping MCD under key moving averages while traders focused on nearby support and resistance levels.

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