SpaceX’s stock closed at $148 on July 8, falling below its initial trading price of $150 for the second consecutive day following a strong IPO performance earlier in June. The company’s shares surged to a peak of $201.80 shortly after debuting on June 12 but have since cooled. SpaceX’s rapid listing on the Nasdaq-100 index, announced on July 7, added to market activity, as index funds linked to the benchmark were required to purchase the stock.

The addition to the Nasdaq-100 came less than a month after SpaceX’s record-setting initial public offering raised $85.7 billion. This fundraising total included the exercise of the “greenshoe” overallotment, which allowed the company to sell additional shares beyond the original offering of 555.6 million at $135 each due to high investor demand. SpaceX’s strong IPO set a record for capital raised and underscored investor enthusiasm for Elon Musk’s aerospace and defense business.

Analyst response since SpaceX’s Nasdaq-100 inclusion has leaned mostly bullish. Morgan Stanley assigned an “overweight” rating with a $300 price target, while Bernstein, RBC, and UBS also issued favorable ratings, highlighting SpaceX’s leadership in reusable rockets, launch services, and its expanding Starlink satellite internet business. These firms see potential growth in applications like artificial intelligence tools and the development of orbital data centers.

However, not all analysts are optimistic. Some, including MoffettNathanson and CFRA, issued more cautious or negative outlooks, urging a neutral stance or recommending selling the stock. Skeptics cite uncertainties related to SpaceX’s long history as a private company and challenges in realizing profit margins and revenue growth. Despite this, the majority of market watchers remain positive on the company’s long-term prospects.