With SpaceX's initial public offering (IPO) expected on June 12, the company has been dominating investment headlines. As it stands, it's planning to raise around $75 billion by selling 555,555,555 shares at $135 each.
With an expected valuation of over $1.77 trillion, SpaceX will instantly become one of the most valuable public companies in the world. So, with major indexes favoring larger companies, how will the S&P 500 (SNPINDEX: ^GSPC) Nasdaq-100 be affected?
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
For a bit, the S&P 500 Dow Jones Indices -- which manages the S&P 500 -- was considering altering its rules to fast-track SpaceX into the index. This was unsurprisingly met with significant backlash, and on June 4, it announced it wouldn't change the criteria after all.
SpaceX will need to check three boxes before joining the S&P 500:
Trade on the market for at least a year;
Have consistent profitability;
Maintain a certain public float (shares available to everyday investors).
Nasdaq, on the other hand, did make changes that will make it much easier for SpaceX to be included in the Nasdaq-100 index (roughly the largest 100 non-financial companies on the Nasdaq exchange) as soon as 15 days after the IPO occurs. This means that if you currently own shares of a Nasdaq-100 exchange-traded fund (like the Invesco Nasdaq-100 ETF (NASDAQ: QQQM) or Invesco QQQ ETF (NASDAQ: QQQ) ), you'll automatically gain exposure to SpaceX whenever it's added to the index.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again
In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. If you’d invested $5,000 then, you’d be sitting on $2,663,109 today.*
Now, for the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. It’s a key player in the $1.8 trillion space race, and with the stock recently sitting 20% off its highs, the window to get in early is closing fast.
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*Stock Advisor returns as of June 1, 2026
Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
