SpaceX to join NASDAQ-100 index on July 7
What's the story
SpaceX will join the NASDAQ 100 index on July 7, NASDAQ confirmed on Friday. The move is expected to trigger a wave of passive investments in Elon Musk's space and AI venture. The inclusion usually results in a rise in stock price as exchange-traded funds (ETFs) that track the index buy shares of newly included companies.
Criteria adjustment
SpaceX meets revised entry criteria
To attract more companies looking for US listings, NASDAQ and other index providers FTSE Russell and MSCI have eased their entry criteria. These changes include profitability, the number of days after a company goes public, and the number of shares available for trading. Despite its recent losses, SpaceX was able to meet these revised standards. The company has reported sharp losses and small profits over the past three years. Last year alone, it posted a net loss of $4.9 billion.
Market debut
Fund managers skeptical about SpaceX's valuation
SpaceX made its NASDAQ debut on June 12. The company's inclusion in the index is expected to attract $4.3 billion in passive inflows, according to JP Morgan. This is because investors buy mutual funds and ETFs that track the NASDAQ 100 for broader exposure. However, not everyone is thrilled about this development; some fund managers are skeptical about the stock's valuation.
Index inclusion
S&P Global takes cautious approach to SpaceX's potential entry
S&P Global has said it won't change the requirements for SpaceX to enter its major indices, including Wall Street's benchmark S&P 500 index. The company will wait at least 12 months before even considering this move. This shows a more cautious approach toward SpaceX's potential entry into other major stock market indices.