SpaceX (NASDAQ:SPCX) shares gained more than 1% in premarket trading on Monday after Nasdaq confirmed the aerospace and satellite communications company will be added to the Nasdaq 100 index on 7 July.
The inclusion is expected to generate substantial passive investment demand as exchange-traded funds and other index-tracking products adjust their portfolios to reflect the benchmark’s new composition
SpaceX shares finished Friday up 0.15% at US$153.23, closing just above their IPO opening price. Although the stock initially rallied to an intraday high of US$225.64 following its market debut, it has since surrendered much of those gains. Last week, shares fell 16.4% after KeyBanc adopted a more cautious stance, arguing that the company’s valuation had become increasingly demanding after its post-IPO surge.
With the IPO priced at US$135 per share, investors who participated in the offering remain ahead by roughly 14%. However, those who purchased shares at the market opening price of around US$150 have seen only modest gains. Analysts Turn Attention to Potential Tesla Combination Following the completion of the IPO, analysts at Baird believe investor focus may increasingly shift towards the possibility of a merger between Tesla and SpaceX. “We see the strategic rationale for a merger as clear and compelling with both companies benefitting from greater scale.