SpaceX falls after two days to close at $148 after being included in the Nasdaq 100

space x The stock closed at $148 on Wednesday, the second consecutive day below the company’s initial trading price of $150 per share.

Elon Musk’s aerospace and defense contractor was added to the Nasdaq 100 index on Tuesday, less than a month after its June 12 stock market debut. Its rapid inclusion in the Nasdaq 100 Index is also due to the exchange’s revised rules for newly listed companies becoming part of the widely watched benchmark.

Joining SpaceX also required benchmark-tracking index funds and exchange-traded funds to buy shares in the company to align with the new lineup.

SpaceX’s record initial public offering raised a total of $85.7 billion after underwriters exercised a “greenshoe” overallotment. This over-allotment allows companies to issue more shares if demand from participants increases during an initial public offering. SpaceX initially offered 555.6 million shares at a set price of $135 per share.

The stock skyrocketed within days of its debut, hitting a closing price of $201.80 on June 16th.

After its inclusion in the Nasdaq 100, analysts’ ratings became mostly bullish.

morgan stanley After the report began, we rated SpaceX stock as “overweight” and set a price target of $300. Bernstein initiated coverage with an “outperform” rating on the stock, with a price target of $239. RBC initiated the stock with an “outperform” rating and a $225 price target. UBS The stock has a buy rating and a starting 12-month price target of $210 per share.

Bulls pointed to the company’s lead in reusable rocket technology and launch services, as well as its vast Starlink satellite internet service, and the potential to improve margins in both businesses.

Analysts pointed to SpaceX’s potential to develop artificial intelligence products and services, from agent coding tools to competitors, for growth. humanClaude or something OpenAIdevelopment of the codex and orbital data center.

Among the more skeptical minority, Moffett Nathanson initiated coverage of SpaceX with a neutral rating, and CFRA recommended selling the stock.

—CNBC’s Michael Bloom contributed to this report.