Space Exploration Technologies Corp (NASDAQ: SPCX) shares had another strong session in trading overnight, and if market watchers are to be believed, there's likely to be ongoing support for the stock over the next week or so.
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Why are traders providing support for SpaceX shares?
This is because the stock is scheduled to be included in the Nasdaq 100 Index from the beginning of trade on Tuesday 7 July, meaning funds which track the index will be compelled to buy the stock.
Such funds include the US$800 billion Invesco QQQ Trust, and JP Morgan has reportedly estimated there will be at least US$4.3 billion in stock purchases by index-tracking funds.
The US$4.3 billion figure may not seem large relative to SpaceX's US$2.25 trillion market capitalisation, but it is significant given that the company has only listed a fraction of its shares in the public float, with US$75 billion in shares offered to new investors.
SpaceX was fast-tracked into the Nasdaq 100, with a rule change adopted by the Nasdaq in May allowing for its rapid inclusion.
How have SpaceX shares fared so far?
SpaceX shares have performed well since they were listed on June 12, hitting a high of US$225.64 in the days immediately following their listing before settling back.
Overnight the shares were 6.2% higher at US$180.86, still well above the US$135 initial public offer price.
As well as the pressure from traders buying in ahead of the Nasdaq 100 inclusion, Bloomberg was also reporting overnight that SpaceX was in talks with Charter Communications to offer a satellite-connected mobile phone service.
The Charter deal, if it eventuates, would be with SpaceX's Starlink division, which is the only one of the company's three divisions which is currently profitable.
How are the company's financials?
SpaceX overall posted a US$2.59 billion loss on revenue of US$18.7 billion in 2025.
And the company's initial public offer prospectus shows that for the first three months of 2026, the Space division lost US$662 million, the AI division lost US$2.47 billion, and the connectivity division made a profit of US$1.19 billion.
The company believes its business opportunity is huge however, saying in the prospectus, "We believe that space represents the largest economic frontier in human history", and suggesting that they will be building AI infrastructure in space, powered by the "virtually limitless" power of the sun, for the benefit of mankind.
The company added:
Our mission is to build the systems and technologies necessary to make life multiplanetary, to understand the true nature of the universe, and to extend the light of consciousness to the stars. To do this, we have formed the most ambitious, vertically integrated innovation engine on (and off) Earth with unmatched capabilities to rapidly manufacture and launch space-based communications that connect the world, to harness the Sun to power a truth-seeking artificial intelligence that advances scientific discovery, and ultimately to build a base on the Moon and cities on other planets.
