SpaceX closes at $148 in two-day slide after Nasdaq 100 inclusion

SpaceX The stock closed at $148 on Wednesday; This was below the company’s initial trading price of $150 per share for the second day in a row.

Elon Musk’s aerospace and defense contractor was included in the Nasdaq 100 index on Tuesday, less than a month after its June 12 debut. Its rapid inclusion in the Nasdaq 100 was due in part to the exchange’s revised rules for newly publicly traded companies to become part of this widely watched benchmark.

SpaceX’s involvement also required benchmark-linked index funds and exchange-traded funds to buy the company’s shares to accommodate the new lineup.

SpaceX’s record initial public offering raised a total of $85.7 billion after underwriters used a “green shoe” blanket allocation. SpaceX initially offered 555.6 million shares at a fixed price of $135 each.

The stock rose rapidly in the days after its debut, hitting a closing peak of $201.80 on June 16.

The inclusion in the Nasdaq 100 was mostly driven by bullish analysts’ ratings.

Morgan Stanley Coverage was initiated and SpaceX shares were rated “overweight” with a $300 price target. Bernstein initiated coverage on “outperform” with a $239 price target. RBC started with an “outperform” rating and a $225 price target. UBS It was initiated with a “buy” rating and a 12-month price target of $210 per share.

Bulls noted the company’s leadership in reusable rocket technology and launch services, its extensive Starlink satellite internet service, and its potential to increase margins for both of those businesses.

For growth, analysts noted SpaceX’s potential to develop artificial intelligence products and services ranging from agent coding tools to competing software. anthropicClaude or OpenAIDevelopment of codex and orbital data centers.

MoffettNathanson, in the more skeptical minority, began treating SpaceX with a neutral rating, and CFRA recommended selling the shares.

—CNBC’s Michael Bloom contributed to this report.