TLDR
- Five tech companies—Rocket Lab, Astera Labs, CoreWeave, Nebius, and Teradyne—will enter the Nasdaq 100 on June 22
- Rocket Lab shares surged more than 7% in premarket activity following the index announcement
- SpaceX completed a historic $75 billion IPO, the world’s largest ever, and may qualify for Nasdaq 100 inclusion within 15 trading sessions
- Charter Communications, Cognizant, Insmed, Verisk Analytics, and Zscaler will exit the index to accommodate new entrants
- The Nasdaq 100 is tracked by investment products managing over $800 billion across 200+ funds
Five technology-focused companies are preparing to enter the Nasdaq 100 index on June 22, according to an announcement made by Nasdaq Global Indexes following Thursday’s trading session. This move is part of the index’s regular quarterly rebalancing process.
Joining the prestigious index are Rocket Lab, semiconductor designer Astera Labs, cloud computing providers CoreWeave and Nebius, and semiconductor testing equipment manufacturer Teradyne.
In Friday’s premarket session, Rocket Lab shares climbed 7.6% to reach $123.55. Astera Labs advanced 4.3%, CoreWeave gained 4.4%, Nebius increased 5.3%, and Teradyne posted a 1.2% rise.
Rocket Lab’s stock has soared 352% during the past twelve months. Market participants have been accumulating aerospace stocks ahead of SpaceX’s public market debut.
SpaceX IPO Ignites Space Sector Momentum
SpaceX commenced trading on the Nasdaq on Friday following the pricing of its initial public offering on Thursday evening. The aerospace company secured $75 billion in capital, establishing a new record as the largest IPO ever completed. This achievement eclipses Saudi Aramco’s previous record of $29.4 billion set in 2019.
SpaceX’s market debut assigns the company an estimated valuation of approximately $1.8 trillion, representing roughly 35 times its annual revenue. By comparison, Rocket Lab currently commands a valuation multiple of nearly 60 times sales, trading at a premium relative to SpaceX.
This valuation differential carries significance. SpaceX is positioned to establish pricing benchmarks for the broader space industry, potentially creating downward pressure on Rocket Lab’s elevated valuation multiple.
In late March, Nasdaq modified its eligibility requirements to enable expedited entry for SpaceX into the Nasdaq 100. Traditional regulations require newly public companies to wait several months post-listing. Under the revised framework, SpaceX could potentially qualify for index inclusion after just 15 trading days.
S&P 500 Maintains Traditional Requirements
A comparable fast-track mechanism was evaluated for the S&P 500, but S&P Dow Jones Indices rejected the proposal last week. The index administrator confirmed it would maintain existing policies and would not modify rules to permit SpaceX or other major technology companies early admission or exemption from standard financial criteria.
The Nasdaq 100 index comprises the 100 largest non-financial corporations listed on the Nasdaq exchange. Over 200 exchange-traded funds and other investment vehicles that track this index collectively manage more than $800 billion in assets.
To accommodate the five incoming companies, an equal number must exit the index. Charter Communications, Cognizant Technology Solutions, Insmed, Verisk Analytics, and Zscaler will be removed from the Nasdaq 100.
The index reconstitution becomes effective prior to market opening on June 22.
SpaceX’s possible addition to the Nasdaq 100 could occur soon thereafter, contingent upon satisfying the eligibility timeline under the newly implemented fast-track provisions.
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