SpaceX Shares Fall Below IPO Price for Two Consecutive Days After Nasdaq 100 Inclusion

According to CNBC, SpaceX (SPCX-US) shares closed at $148 on Wednesday, June 8, marking the second consecutive trading day below its initial public offering (IPO) debut price of $150.

The Elon Musk-led aerospace and defense company was officially added to the Nasdaq 100 index on Tuesday, less than a month after its June 12 market debut. SpaceX’s rapid inclusion was partly due to recent rule changes by the exchange regarding the eligibility of newly listed companies for index inclusion.

The addition to the Nasdaq 100 index has prompted index-tracking funds and ETFs to purchase SpaceX shares to align with the updated index composition.

SpaceX raised a total of $85.7 billion in its IPO, making it one of the largest initial public offerings in history. This was achieved through the exercise of the greenshoe option (over-allotment), which allowed the company to issue additional shares amid strong market demand. SpaceX initially priced its IPO at $135 per share, issuing 555.6 million shares.

In the days following its market debut, SpaceX shares surged strongly, reaching a peak closing price of $201.80 on June 16.

Following its Nasdaq 100 inclusion, several Wall Street institutions have issued bullish ratings.

Morgan Stanley initiated coverage with an Overweight rating and a $300 price target. Bernstein assigned an Outperform rating with a $239 target. RBC Capital Markets also gave an Outperform rating with a $225 target. UBS initiated with a Buy rating and a 12-month price target of $210.

Bullish analysts highlight SpaceX’s leadership in reusable rocket technology, launch services, and its Starlink satellite internet network, projecting continued improvements in profitability for these core businesses.

In terms of growth potential, analysts believe SpaceX could expand into AI-related products and services, including AI agent development tools, AI models competitive with Anthropic’s Claude or OpenAI’s Codex, and the development of orbital data centers.

However, some market participants remain skeptical. MoffettNathanson initiated coverage with a Neutral rating, while CFRA recommended investors to Sell the stock.