SpaceX shares extend slide after Nasdaq-100 inclusion
SpaceX traded near its $135 IPO price after a second daily decline, CNBC reported, despite recent demand tied to its Nasdaq-100 entry.
By Sarah Jenkins · Chief Macro Economics Correspondent
· 2 min read
SpaceX shares fell for a second consecutive trading session on Monday, moving closer to the $135 price set in the company’s initial public offering, according to CNBC. The stock was quoted at $139.52 at 10:59 a.m. EDT, down $5.79, or 3.98%, and was also below the $150 level at which it began trading on June 12.
The decline followed SpaceX’s recent addition to the Nasdaq-100, a widely followed benchmark for large non-financial companies listed on Nasdaq. CNBC reported that the inclusion had brought a new wave of passive buying as funds designed to replicate the index adjusted their holdings to reflect its updated membership.
Index inclusion can affect trading flows because passive products seek to hold the same securities, in broadly the same proportions, as the benchmark they track. When a company is added, those funds typically need to buy the stock, while companies removed from the index may see corresponding selling by those vehicles.
CNBC said Nasdaq had recently changed its rules for newly public companies, permitting SpaceX to enter the index within a month of its public listing. The company, formally Space Exploration Technologies Corp. and led by Elon Musk, was described by CNBC as operating across space and artificial intelligence.
The share move places renewed attention on the gap between three reference points for the newly listed stock: the $135 IPO price, the $150 first-trade price on June 12, and Monday’s intraday quote near $140. A stock’s IPO price is the level at which shares are sold to initial investors in the offering. The debut price reflects where the stock first changes hands once it begins public trading, and can differ from the offering price depending on market demand and order flow.
For investors and market operators, the early trading pattern shows how index-linked demand may coexist with selling pressure after a high-profile listing. CNBC reported that SpaceX’s shares had already slipped below their debut price before Monday’s move.
The company’s entry into the Nasdaq-100 also broadens its exposure to global investors that access U.S. technology and growth companies through index funds and exchange-traded products. CNBC did not report a company statement on Monday’s share move.
This story draws on original reporting from CNBC.
