SpaceX stock closes below debut price at $148 in two-day slide after Nasdaq 100 inclusion

SpaceX shares finished at $148 on Wednesday, marking a decline for the second consecutive day after debuting at $150 per share. This drop follows the company's recent addition to the Nasdaq 100 index, which occurred just days after its market debut on June 12. The swift inclusion into the Nasdaq 100 was influenced by new rules that allow recently public companies to be part of this significant benchmark. As a result, index funds and exchange-traded funds associated with the Nasdaq 100 have been compelled to acquire SpaceX shares to align with the updated index. In its initial public offering, SpaceX achieved a remarkable $85.7 billion, aided by underwriters utilizing the greenshoe option. The company initially offered 555.6 million shares priced at $135 each. Following its debut, the stock experienced a surge, reaching a peak closing price of $201.80 on June 16. Analysts largely responded positively to the Nasdaq 100 inclusion. Morgan Stanley began its coverage with an "overweight" rating and set a price target of $300. Bernstein rated the shares as "outperform" with a target of $239, while RBC also rated them as "outperform" with a $225 target. UBS gave a "buy" rating with a 12-month target of $210 per share. Optimistic analysts highlighted SpaceX's leadership in reusable rocket technology and its expansive Starlink satellite internet service, noting the potential for increased profit margins in these sectors. Furthermore, they pointed to the company's prospects in developing artificial intelligence products, including coding tools that could compete with offerings from Anthropic and OpenAI. On the other hand, some analysts expressed caution. MoffettNathanson assigned a neutral rating, while CFRA advised investors to sell their shares of SpaceX. As the market watches closely, the future trajectory of SpaceX’s stock remains uncertain.