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Reuters reported that SpaceX will be added to the Nasdaq 100 index on July 7, exchange operator Nasdaq confirmed Friday, paving the way for a surge of passive investment into Elon Musk's rocket and AI company less than a month after its June 12 market debut.
Inclusion in the tech-heavy index typically drives share-price appreciation as ETFs tracking the benchmark — including Invesco's QQQ and QQQM — are forced to buy shares of the newly added constituent. JPMorgan estimated that SpaceX's addition could draw approximately $4.3 billion in passive inflows.
Nasdaq, alongside index providers FTSE Russell and MSCI, relaxed entry requirements covering profitability, days since IPO, and free-float share count to make index inclusion more accessible for newly listed companies. SpaceX has swung between sharp losses and small profits over the past three years, reporting a net loss of $4.9 billion last year, though revenue continues to climb.
Morningstar chief equity market strategist Michael Field noted that the fast-tracked integration reflects strong demand, but cautioned that Morningstar considers the stock overvalued. The development also signals what's ahead for AI companies: large language model makers OpenAI and Anthropic, both expected to file for IPOs this year or next, are likely to target valuations exceeding $1 trillion. S&P Global, however, said it will not adjust its index requirements for SpaceX and will wait at least 12 months before considering the company for inclusion in the S&P 500.