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Or sign-in if you have an account.Elon Musk, founder and CEO of SpaceX, speaks via video before the ringing of opening bell at the Nasdaq Marketsite at the launch of the company's initial public offering (IPO) on June 12, 2026 in New York City. Photo by Spencer Platt/Getty ImagesSpaceX joins the Nasdaq 100 Index Tuesday as Wall Street brokerages launch coverage of Elon Musk’s rocket, satellite and artificial intelligence company with a clear consensus: buy the stock.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorAt least six brokers, including Morgan Stanley and Goldman Sachs Group Inc. have started coverage with buy-equivalent ratings, following the end of the traditional quiet period for analysts from banks that helped underwrite its US$86 billion initial public offering.Analysts are leaning into the long-term growth prospects for SpaceX, even as questions over its profitability, execution and valuation continue to linger after a blockbuster market debut. Morgan Stanley, among the biggest bulls, said the company stands to gain from demand for AI services driven by fast-growing, new industry entrants.Canada's best source for investing news, analysis and insight.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Investor will soon be in your inbox.We encountered an issue signing you up. Please try again“While neocloud deals are the bulk of the business near term, we see end-to-end AI services as the longer-term business model,” Morgan Stanley analysts including Adam Jonas wrote in a note.His team set a price target of US$300 per share, implying an 87 per cent gain from Monday’s close of US$160.42.Meanwhile, smaller brokerages have more extreme targets. Arete Research has a Street High of US$401, while New Street Research has initiated with US$165, the lowest among analysts tracked by Bloomberg.The analyst calls matter because they give investors a framework for valuing SpaceX as more than a Musk-driven moonshot. However, sell-side analysts tend to be quite bullish on stocks — with the largest names enjoying some of the most positive ratings. For instance, Microsoft Corp. shares might have sunk about 30 per cent from their high, but some 95 per cent of the analysts covering the stock still have a buy-equivalent rating.Across the 3,000 biggest U.S. companies, buy recommendations account for 63 per cent of all analyst ratings, according to data compiled by Bloomberg. Only 4.2 per cent of ratings are sells, the data show.SpaceX’s addition to the Nasdaq 100 should provide considerable support to the stock, considering the number of funds that track the tech-heavy benchmark.Space Exploration Technologies Corp., to give the company its official name, won swift entry to Nasdaq Inc.’s main index after rule changes by the exchange operator. These adjustments allow newly listed, large-cap companies to be included in the Nasdaq 100 in as little as 15 trading days, down from the previous three-month minimum.The stock also became a member of the Russell 1000 Index late last month, just two weeks after its IPO. Bloomberg Intelligence analyst Rob Du Boff estimated that SpaceX’s inclusion in the Nasdaq 100 and FTSE Russell gauges would drive at least US$5.4 billion in buying from index-tracking funds.Demand from passive investors might have been even greater, but S&P Dow Jones Indices, a unit of S&P Global that oversees benchmarks including the S&P 500, decided in early June to keep its existing eligibility requirements, That closed the door to fast entry by SpaceX.“The Nasdaq 100 does not have nearly as much assets benchmarked to it as the S&P 500, but it also has some factors that juice demand for SpaceX,” said Du Boff.The timing of SpaceX’s Nasdaq index inclusion should help minimize volatility in the stock, according to David Trainer, chief executive officer of technology research firm New Constructs. However, investors should be cautious because the company’s market valuation is detached from its fundamentals, he said.Shares in the company, which have fallen about 29 per cent from their all-time intraday high, were about 1.8 per cent lower in premarket trading on Tuesday amid a broader technology selloff.With assistance from Phil Serafino, Lynn Thomasson and Michael Msika Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.