SpaceX Stock Price Slips 5.85% Amid Nasdaq-100 Entry, Analysts Stay Bullish

Key Insights:

• SpaceX stock price fell 5.85% as the company officially joined the Nasdaq-100 index.
• A limited IPO float kept the Nasdaq-100 weighting below 1% despite a $2.1T valuation.
• Major Wall Street firms launched bullish coverage despite the stock’s trading decline.

SpaceX stock price came under pressure as the company entered the Nasdaq-100 after its June IPO. Shares fell by 5.85% to $151.04, losing $9.38 from the previous close of $160.42. The decline came as investors tracked the company’s first trading session inside the index and reviewed new analyst coverage following the end of the post-IPO quiet period.

Despite the pullback, several major brokerages began coverage with bullish ratings, creating a split view between short-term selling and longer-term Wall Street expectations.

The chart showed SpaceX opened lower before losses deepened in early trading. The stock moved toward the $150 level as selling pressure increased. Later in the session, the decline eased as the price remained in a tighter range.

The move kept the stock above its $135 IPO price. However, it remained below recent post-listing highs after a more than 6% retreat.

SpaceX Stock Price Falls as Nasdaq-100 Inclusion Begins

SpaceX officially joined the Nasdaq-100 on Tuesday. The company entered the index with a reported valuation of $2.1 trillion. However, its index weight remained below 1% because less than 5% of shares were sold in the IPO. The remaining 95% stayed locked up.

SpaceX joins Nasdaq-100 despite SpaceX stock price decline | Source: X

That structure affected how index funds treated the company at entry. Although SpaceX carried a $2.1 trillion valuation, its available float gave it a much smaller index footprint.

Index funds tied to the Nasdaq-100 began buying SpaceX shares on inclusion day. The provided information cited $800 billion in index funds linked to the index. It also cited the QQQ ETF, which has $500 billion in assets.

Float Structure Keeps Investor Focus on Future Demand

SpaceX sold less than 5% of its shares during the IPO. That left most shares unavailable for public trading at the start. The limited float helped reduce the company’s initial index weight. It also affected how much passive demand there was on inclusion day.

Despite the sales, it was reported that more shares will enter circulation as employee lockups expire. Each increase in float could raise SpaceX’s Nasdaq-100 weighting. Index funds would then need to buy more shares to match the new weighting. However, that plan depends on when employees can sell.

The details also said SpaceX approached index providers earlier this year. The company reportedly requested early entry into the Nasdaq-100. That move placed the stock inside major index products soon after listing. It also linked future passive demand to changes in available float.

Even so, Tuesday’s trading showed immediate selling pressure. The SpaceX stock price fell despite the index inclusion. The decline showed that passive buying did not prevent a near-term drop.

Analysts Begin Coverage with Mostly Buy Ratings

The stock decline also came as Wall Street analysts began post-IPO research. The 25-day quiet period expired after the June IPO. That allowed underwriting banks to publish formal coverage for the first time, with several major brokerages starting with buy or equivalent ratings.

Goldman Sachs analyst Eric Sheridan set a $205 price target. Morgan Stanley’s Adam Jonas assigned a $300 target. Bank of America, Citigroup, Deutsche Bank, JPMorgan, Macquarie, RBC Capital Markets, UBS, and Wells Fargo also began with bullish recommendations. Raymond James analyst Brian Gesuale gave the highest target at $800.

Analysts cited SpaceX’s businesses across launch services, Starlink, and government contracts. They also noted recurring revenue from communications operations and increased launch activity.

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