According to ChainCatcher and Reuters, Nasdaq has confirmed that SpaceX (ticker: SPCX) will be added to the Nasdaq 100 Index on July 7. The inclusion is expected to trigger a wave of passive buying, as ETFs tracking the index must allocate shares of newly added companies.
Passive Inflow and Market Impact
JPMorgan estimates that SpaceX's inclusion in the Nasdaq 100 could attract approximately $4.3 billion in passive fund flows. Historically, index inclusions tend to boost stock prices significantly. SpaceX went public on Nasdaq on June 12, just a few weeks ago. To attract more companies, Nasdaq, along with index providers such as FTSE Russell and MSCI, previously relaxed some inclusion requirements, including profitability, days since listing, and the number of tradable shares.
Financial Performance and Valuation Concerns
Despite its rapid listing, SpaceX's financial performance has been volatile. Over the past three years, the company has swung between deep losses and modest profits, posting a net loss of $4.9 billion last year. Michael Field, Chief Equity Market Strategist at Morningstar, commented: "Obviously there is strong demand, which is why they are adding it quickly." He added that while many will welcome the move, some fund managers and skeptics disagree; Morningstar believes the stock is overvalued. Investors typically gain broad market exposure through Nasdaq 100 trackers such as Invesco's QQQ and QQQM.
AI Company IPO Outlook and Broader Index Adjustments
Beyond SpaceX, large language model companies like OpenAI and Anthropic are expected to file for IPOs this year or next, potentially seeking valuations exceeding $1 trillion. However, S&P Global stated this month that it will not adjust the requirements for SpaceX to enter major indices such as the S&P 500, and will consider inclusion only after at least 12 months. This means SpaceX will remain absent from broader indices in the near term.