SpaceX set to join Nasdaq 100, paving way for wave of passive buying

Analysts estimate the move may attract around $4.3 billion in passive investments

SpaceX will be added to the tech-heavy Nasdaq 100 index on Jul 7, exchange operator Nasdaq confirmed on Friday, paving the way for a surge in passive investments in ‌Elon Musk's rocket and AI giant.

Inclusion in the index typically boosts the stock price, as exchange-traded funds looking to replicate the index's performance buy shares of the newly included firm.

To make it more attractive for companies seeking US listings, Nasdaq, along with other index providers FTSE Russell, and MSCI relaxed ⁠its entry requirements including profitability, the number of days after a company goes public and the number of shares available for trading.

SpaceX, which made its Nasdaq debut on Jun 12, has swung between sharp losses and small profits over the past three years. Last year, the company reported a net loss of $4.9 billion.

Large Language Model (LLM) makers OpenAI and Anthropic are also expected to file for their initial public offerings this year or next year and likely target valuations of more ‌than $1 trillion.

Investors ⁠buy mutual funds and ETFs, such as Invesco's QQQ and QQQM, that track the Nasdaq 100, to get broader exposure.

JP Morgan estimated that SpaceX's inclusion in the Nasdaq 100 could draw $4.3 billion in passive inflows