SpaceX joined the Nasdaq-100 index on July 7 as Wall Street rallied on Thursday (9th), with the index gaining 1.9% over two days. The stock debuted June 12 in the largest IPO in history and fell to $148.3 on July 8 after peaking at $225.64 — a 26.5% decline from its closing high. The Nasdaq Stock Exchange announced a Fast Entry Pathway rule in May allowing top-40 market cap companies to join the index shortly after listing, a change widely viewed as tailored for SpaceX. The company's market cap currently stands at approximately $2 trillion, ranking seventh in the index, as the Mandatory Quiet Period restricting analyst coverage ended with its index inclusion.
Nasdaq Introduces Fast Entry Pathway for SpaceX Inclusion
The Nasdaq Stock Exchange announced the Fast Entry Pathway rule in May, allowing newly listed companies with market capitalizations ranking in the top 40 of the Nasdaq-100 to join the index through an accelerated process. The rule change occurred during SpaceX's IPO preparation period. SpaceX's current market capitalization of approximately $2 trillion places it seventh among Nasdaq-100 constituents. Index-tracking funds following the Nasdaq-100 can now allocate to SpaceX shares following its July 7 inclusion.
SpaceX Stocks Fall 26.5% from Peak as Analyst Coverage Resumes
SpaceX stock reached $225.64 after its June 12 listing before declining to $148.3 on July 8. The Mandatory Quiet Period, which restricts investment banks from publishing research on newly public companies, ended coinciding with the stock's Nasdaq-100 inclusion. Morgan Stanley and Goldman Sachs released reports following the quiet period's conclusion. Citi analyst John Godyn published the highest price target, stating SpaceX could reach $900 if Starship successfully launches.
Starlink Drives Revenue While Company Reports $4.27 Billion Q1 Loss
Starlink, SpaceX's low-earth orbit satellite communications business, contributes the majority of the company's revenue and profit. Other investments remain in cash-burning phases. SpaceX reported a $4.27 billion loss in the first quarter, following an approximately $4.9 billion loss in 2025. Market observers questioned the IPO pricing based on the company's high price-to-sales ratio, with comparisons drawn to the 2000 dot-com bubble.
Historical IPO Data Shows Average 23% First-Year Drawdown
The Motley Fool published statistics compiled by Trevor Jennewine examining the 15 largest IPOs on Wall Street excluding SpaceX. The study found these companies experienced an average maximum drawdown of 23% from peak prices within one year of listing. The average return one year post-IPO was negative 2%, with only three companies avoiding declines below their listing prices. Based on SpaceX's $135 IPO price and historical patterns, the calculation suggests the stock could fall to $132 by June (next year).
Hang Seng Index Gains 144 Points as Technical Indicators Improve
The Hang Seng Index opened 183 points higher on Friday, finding support at the 24,000 level before rising to 24,499 points. The index closed at 24,175 points, up 144 points. The Hang Seng recovered both its 10-day and 20-day moving averages during the week. The smoothed mid-term market breadth indicator (ratio of stocks with 10-day line above 50-day line) rose for two consecutive days, confirming a bottom formation known as a "Golden Cross." The index faces a high-volume consolidation zone between 24,200 and 24,700 points.
FAQ
What happened to SpaceX stocks after joining the Nasdaq-100 on July 7?
SpaceX stocks fell to $148.3 on July 8 after the company joined the Nasdaq-100 index on July 7. The stock had previously peaked at $225.64 following its June 12 IPO, representing a 26.5% decline from its closing high. The Mandatory Quiet Period restricting analyst coverage ended with the index inclusion, prompting investment banks including Morgan Stanley, Goldman Sachs, and Citi to publish research reports on the company.
How do historical IPO performance patterns apply to SpaceX?
A study by Trevor Jennewine published on The Motley Fool examined the 15 largest Wall Street IPOs excluding SpaceX. The research found these companies experienced an average 23% maximum drawdown from peak prices within one year of listing, with an average return of negative 2% one year post-IPO. Only three of the 15 companies avoided trading below their IPO prices. Based on SpaceX's $135 IPO price and these historical patterns, calculations suggest the stock could decline to $132 by June (next year).
