- SpaceX joins the Nasdaq-100 on Tuesday, but its index weight is limited to roughly 1% to 1.3% because less than 5% of shares were sold publicly.
- Insider lockups may create future selling pressure, with some restrictions expiring 70 to 135 days after the June 12 IPO.
- Jeremy Grantham called SpaceX the “craziest IPO in the history of man,” warning that its valuation relies on aggressive AI assumptions.
SpaceX will join the Nasdaq-100 on Tuesday, triggering automatic demand from index-linked ETFs and mutual funds including Invesco’s QQQ. The company was fast-tracked into the benchmark under rules designed for newly public megacap firms, but its initial weight is capped by a small public float.
Consequently, SPCX stock fell 1% on Monday and dropped another 2% overnight, extending a recent pullback. Jeremy Grantham, investment strategist at GMO, criticized the valuation in a Morningstar interview, calling it the “craziest IPO in the history of man.”
Grantham argued that the company is “rolling in red ink” and that 90% of the projection depends on its “currently third-rate AI offering.” He said he would “bet at least 90%” on a crash rather than SpaceX justifying its current valuation.
Meanwhile, insider lockups pose future supply risk, with some restrictions expiring 70 to 135 days after the June 12 IPO. CEO Elon Musk’s shares and certain large-holder restrictions are expected to remain locked for about a year.
On Stocktwits, retail sentiment for SPCX flipped to ‘bearish’ over the past week from ‘extremely bullish’ levels at listing. One user noted that the largest bulk of forced buying will occur around 3 PM on Tuesday.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
