Rocket Lab (RKLB) and Four Tech Firms Enter Nasdaq 100 as SpaceX Posts Historic $75B IPO

Key Highlights

• Five tech companies—Rocket Lab, Astera Labs, CoreWeave, Nebius, and Teradyne—will enter the Nasdaq 100 index on June 22
• Rocket Lab shares surged more than 7% in premarket activity following the index announcement
• SpaceX completed a historic $75 billion public offering, surpassing all previous IPO records, and may qualify for Nasdaq 100 entry within 15 trading sessions
• The quarterly rebalancing will see Charter Communications, Cognizant, Insmed, Verisk Analytics, and Zscaler exit the index
• The Nasdaq 100 is replicated by over 200 investment products representing more than $800 billion in total assets

Nasdaq Global Indexes revealed after Thursday’s closing bell that Rocket Lab and four additional technology enterprises will be added to the Nasdaq 100 during its quarterly reconstitution, effective June 22.

The incoming members include semiconductor manufacturer Astera Labs, cloud infrastructure providers CoreWeave and Nebius, along with semiconductor testing equipment producer Teradyne.

In Friday’s premarket session, Rocket Lab stock surged 7.6% to reach $123.55. Meanwhile, Astera Labs advanced 4.3%, CoreWeave posted a 4.4% gain, Nebius climbed 5.3%, and Teradyne increased 1.2%.

Rocket Lab USA, Inc., RKLB

Rocket Lab’s stock has delivered an impressive 352% return over the trailing twelve months. Market participants have been accumulating positions in space-sector equities ahead of SpaceX’s highly anticipated public debut.

SpaceX Public Offering Energizes Space Sector

SpaceX commenced trading on the Nasdaq exchange Friday morning following Thursday’s IPO pricing. The aerospace manufacturer secured $75 billion in capital, establishing a new benchmark as history’s largest initial public offering. This achievement eclipses the previous record held by Saudi Aramco’s $29.4 billion market debut in 2019.

SpaceX’s public offering assigns the company an approximate enterprise value of $1.8 trillion, representing roughly 35 times revenue. By comparison, Rocket Lab currently commands a valuation multiple approaching 60 times sales, indicating a significant premium relative to SpaceX.

This valuation disparity carries important implications. SpaceX is positioned to serve as a pricing reference point for the broader aerospace and space technology sector, potentially exerting downward pressure on Rocket Lab’s elevated valuation multiple.

In late March, Nasdaq implemented policy modifications specifically designed to accelerate SpaceX’s potential inclusion in the Nasdaq 100. Traditional requirements mandate a waiting period of several months post-listing. The revised framework enables SpaceX to achieve eligibility in potentially just 15 trading days.

S&P 500 Maintains Traditional Standards

A comparable expedited entry mechanism was explored for the S&P 500, however S&P Dow Jones Indices ultimately rejected the proposal last week. The index administrator confirmed it will not modify existing eligibility criteria to accommodate SpaceX or other major technology corporations seeking accelerated admission or exemptions from established financial prerequisites.

The Nasdaq 100 represents the 100 largest non-financial enterprises listed on the Nasdaq exchange. Investment vehicles tracking this benchmark encompass more than 200 distinct products holding collective assets exceeding $800 billion.

To accommodate the five incoming constituents, an equal number of companies will depart from the index. Charter Communications, Cognizant Technology Solutions, Insmed, Verisk Analytics, and Zscaler face removal from the roster.

The rebalancing becomes effective prior to market opening on June 22.

SpaceX’s prospective addition to the Nasdaq 100 could materialize soon thereafter, contingent upon satisfying the eligibility timeline established by the newly adopted fast-track provisions.

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