Space Exploration Technologies Corp (NASDAQ: SPCX) is expected to be included in the Nasdaq-100 index this week, less than a month after its 12 June listing.

The inclusion is driven by the Nasdaq-100's fast-track rules for extraordinarily large listings. This allows a company to be added to the index far more quickly than the standard schedule if its market cap is large enough to justify it.

SpaceX, now trading at US$160 per share at a valuation exceeding US$2 trillion, clearly meets that threshold.

For Australian investors, the implications are more direct than many realise.

What Nasdaq-100 inclusion actually means

The Nasdaq-100 is not just a list of large technology companies. Instead, it is the benchmark that underpins hundreds of billions of dollars in index-tracking funds and ETFs around the world.

When SpaceX joins that index, every fund that tracks the Nasdaq-100 must buy SpaceX shares, mechanically and at scale, regardless of what any portfolio manager thinks of the company's valuation.

Estimates suggest between US$22 billion and US$27 billion in mechanical index buying will be required across QQQ and Russell 1000 trackers once the inclusion becomes effective.

What inclusion means for NDQ holders

The most direct impact for Australian retail investors is felt through the Betashares Nasdaq 100 ETF (ASX: NDQ). NDQ is one of the most widely held ETFs in Australia.

Anyone who owns NDQ, or other ASX-listed US-focused ETFs including the Vanguard MSCI Index International Shares ETF (ASX: VGS) and the iShares S&P 500 ETF (ASX: IVV), will own SpaceX shares once the inclusion is effective.

That happens automatically, without the investor needing to do anything.

For investors who want Nasdaq-100 exposure and are comfortable with SpaceX as a holding, NDQ remains the simplest and most liquid way to access that index from the ASX.

For investors who are concerned about SpaceX's valuation or its GAAP losses, it is worth noting that the inclusion means they will own SpaceX whether they want to or not.

What inclusion means for RCKT holders

For the Betashares Space Industry ETF (ASX: RCKT), index inclusion has come even faster.

SpaceX has already been included in RCKT following the fund's fast-track inclusion feature. This allowed SpaceX to enter the Solactive Space Industry Index far more quickly than standard timelines would normally permit.

SpaceX now represents 25.9% of the RCKT portfolio, making it the fund's single largest holding by a wide margin.

That means RCKT holders already own a meaningful and direct slice of SpaceX, alongside the fund's 28 other holdings across the global space economy. Rocket Lab and AST SpaceMobile remain as the next two largest positions.

For investors who want concentrated and thematic exposure to the space economy, RCKT now offers something NDQ cannot: a dedicated space fund with SpaceX as its dominant holding.

The trade-off remains that RCKT is a smaller, less liquid fund with a higher management fee of 0.57% per annum compared to NDQ's 0.22%.

What inclusion means for superannuation investors

Beyond direct ETF holdings, the Nasdaq-100 inclusion has implications for the millions of Australians whose superannuation funds allocate to international shares.

The vast majority of Australian super funds allocate a large portion of their international shares exposure to US equities. Those allocations typically include the largest companies in the US market.

Once SpaceX is in the Nasdaq-100, it becomes a holding in most institutional portfolios that benchmark against that index.

For most superannuation members, that exposure will be small relative to the overall portfolio. But it will exist, automatically, without any action required.

The risk worth understanding

SpaceX is not a conventionally profitable company.

The company posted a GAAP net loss of US$4.94 billion in 2025. This was driven by losses in the xAI and Space divisions that offset the Starlink connectivity business's profitability.

A company trading at US$2 trillion with significant GAAP losses is a demanding proposition even for investors who are excited about the long-term Starlink and space economy opportunity.

Nasdaq-100 inclusion forces index-tracking funds to own it regardless.

Foolish takeaway

SpaceX joins the Nasdaq-100 this week. Millions of Australian investors will automatically own a piece of the world's most valuable space company through their ETFs and super funds.

For both RCKT and NDQ holders, exposure arrives without any further action required.

Whether SpaceX at US$2 trillion is a good investment is a separate question.

The post SpaceX will be included in the Nasdaq index this week. Here's what that means for ASX investors appeared first on The Motley Fool Australia.

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.

The post Why is the SpaceX stock price trading higher? appeared first on The Motley Fool Australia.

SpaceX shares were US$135 apiece at last Friday's IPO, and have already soared past $200 at the time of writing. 

That's a 25% rise in just a few days of trading. 

Is the hype justified?

Australians have long looked to US equities to build wealth. 

Many Aussies investors would have exposure to S&P 500 companies in their portfolio. 

The new SpaceX listing has generated plenty of headlines, but is it really a strong investment?

For investors looking for reasons to buy, SpaceX isn't hype built on nothing..

Starlink – its satellite internet division, generates substantial operating income of $4.4 billion at 39% margins. That's a real, profitable business inside the rocket company.

SpaceX also controls the majority of orbital launches globally and has a multi-year head start on competitors in reusable rockets. 

Starlink is already the world's largest satellite internet provider with millions of subscribers, including in regional Australia.

On the flip side, at a ~$2 trillion valuation against approximately $18.6 billion in 2025 revenue, SpaceX trades at almost 100 times trailing revenue. 

This dramatically exceeds the worlds largest companies like Nvidia Inc (NASDAQ: NVDA).

This means there is almost no margin for error and SpaceX investors are paying a premium. 

What are experts saying?

Experts seem cautious on the first 12 months of trading for the company. 

As my colleague Bronwyn Allen reported yesterday, the current share price already sits well above many price targets from brokers. 

Some of these targets are as low as $115 per share. 

The honest truth is that both things can be true at the same time:

• Analysts are probably right that the stock is fundamentally overvalued today
• The stock could still double from here before it ever corrects. 

How can investors gain exposure?

Many brokers and platforms now allow Australians to buy and sell US stocks. 

However there are some other options to hedge against some risk. 

For example, SpaceX is likely soon to be included in the Betashares Space Industry ETF (ASX: RCKT) thanks to the fast-track feature.

This could allow investors to have more diversified exposure to the sector, while including some allocation to SpaceX. 

Another space themed ETF that just became available is the Global X Space Tech ETF (ASX: MOON), which is also could include SpaceX at some stage. 

The post SpaceX shares are rocketing – how can Aussie investors get exposure? appeared first on The Motley Fool Australia.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 to fall

The Australian share market looks set for a subdued day on Wednesday following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 20 points or 0.25% lower. In the United States, the Dow Jones rose 0.65%, but the S&P 500 fell 0.55% and the Nasdaq dropped 1.15%.

Oil prices continue to tumble

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor session after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 5.1% to US$76.66 a barrel and the Brent crude oil price is down 4.45% to US$79.47 a barrel. This follows reports that the US will allow Iran to sell oil immediately.

Buy Dexus Convenience shares

Bell Potter is bullish on Dexus Convenience Retail REIT (ASX: DXC) shares. This morning, the broker has named the REIT as a buy with a trimmed price target of $3.15 (from $3.25). It said: "We maintain our Buy rating on DXC and lower our target price to $3.15. The buyback and developments offer attractive long-term returns, despite the short-term headwinds from rising bond yields. With our revised forecasts DXC is yielding 7.9% vs. 6.4% passive REIT average which we think offers compelling risk adjusted value, and at an implied 8.21% cap rate, despite recent asset sales supporting book value."

Gold price edges higher

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) will be on watch on Wednesday after the gold price edged higher overnight. According to CNBC, the gold futures price is up 0.1% to US$4,353.3 an ounce. Easing interest rate hike bets have given the precious metal a boost.

SpaceX now bigger than Amazon

Space Exploration Technologies Corp (NASDAQ: SPCX) shares continued their post-IPO rise overnight on Wall Street. This has taken the space and AI company's shares to a market capitalisation of US$2.66 trillion, which takes it ahead of Amazon (NASDAQ: AMZN) and within sight of Microsoft (NASDAQ: MSFT).

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set for a decent start to the week following a solid finish to the last one on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 39 points or 0.45% higher. In the United States, the Dow Jones was up 0.7%, the S&P 500 rose 0.5%, and the Nasdaq climbed 0.3%.

Oil prices tumble

ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) will be on watch after oil prices tumbled on Friday night. According to Bloomberg, the WTI crude oil price was down 3.2% to US$84.88 a barrel and the Brent crude oil price was down 3.4% to US$87.33 a barrel. Reports that the US and Iran are on the verge of signing a peace deal could put further pressure on oil prices in Asian trade.

SpaceX takes off

Space Exploration Technologies Corp (NASDAQ: SPCX) had a very successful IPO on Friday. The space, satellite broadband, and AI company's shares jumped 19% to end at US$160.95. This leaves Elon Musk's SpaceX with a US$2.1 trillion valuation and makes him the world's first trillionaire.

Gold price jumps

ASX 200 gold shares including giants Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a great start to the week after the gold price jumped on Friday night. According to CNBC, the gold futures price was up 3% to US$4,238.8 an ounce. Falling oil prices have eased inflation concerns and interest rate hike bets.

Buy SEEK shares

Bell Potter thinks Seek Ltd (ASX: SEK) shares are still good value despite cutting its valuation this morning. According to the note, the broker has retained its buy rating with a reduced price target of $18.60 (from $23.60). It said: "We maintain our Buy; SEK is our preferred rate-sensitive classifieds exposure looking through to a dovish RBA tilt, given the diversification in CAR and policy-impacted earnings outlook for REA. Our Target Price is reduced to $18.60sh through earnings changes and an increase in our WACC to 10.3% (prev. 10.2%), a reduction our Growth Fund valuation via Coursera and an increase in Fund discount rate to 30% (prev. 20%) on visibility in PortCo operating performance in an AI-enabled environment. SEK's underlying proprietary data (~750m points per day) partially consists of traffic meta data which is unable to be scraped by third parties, is valuable for targeted job placements, should support yield through soft volume environments."

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.