SpaceX stock got a nice lift on Monday, rising nearly 3% after Nasdaq announced the company will join the Nasdaq-100 Index. The move, effective before the market opens on July 7, is a big deal for index-tracking funds that will now need to buy shares of SpaceX (SPCX).
The broader market was in a risk-on mood, with the Communication Services sector up 1.59% and the S&P 500 gaining 1.25%. The Invesco QQQ Trust, which mirrors the Nasdaq-100, climbed 1.82%. But it wasn't all roses: the iShares Russell 2000 ETF fell 1.15%, showing that the gains were concentrated in large-cap growth stocks like SpaceX.
Nasdaq-100 Inclusion: What It Means
Being added to a major index like the Nasdaq-100 typically boosts demand for a stock, as passive funds and ETFs adjust their holdings. For SpaceX, this is a stamp of approval from the market, and investors seem to agree. The stock was up 2.33% at $156.80 at the time of publication.
A Potential Mobile Partnership with Charter
In other news, Bloomberg reported that SpaceX has held executive-level talks with Charter Communications (CHTR) about a potential partnership to launch a consumer mobile phone service in the U.S. The idea is that Charter would route some of SpaceX's mobile traffic through its ground-based network, supporting SpaceX's plans to expand Starlink Mobile into a direct-to-consumer offering.
Currently, SpaceX offers Starlink Mobile as a $10-per-month add-on through T-Mobile (TMUS), providing text messaging and internet-based calls in remote areas. A deal with Charter could broaden that reach significantly.
Analyst Outlook
Wall Street is taking a cautious stance on SpaceX for now. The stock carries a Hold consensus rating from seven analysts, with an average price target of $158.33. Forecasts range from $115 to $190. Recent analyst actions include:
- Argus Research initiated coverage with a Hold rating on June 26.
- Susquehanna initiated with a Neutral rating and a $170 price target on June 23.
- KeyBanc initiated with a Sector Weight rating on June 22.
So, while the index inclusion and potential Charter deal are positive catalysts, analysts are waiting to see how things play out. For now, SpaceX is riding a wave of good news.
