SpaceX surges, but bigger days are ahead: TD Securities

SpaceX, the Elon Musk rocket maker, made its highly anticipated debut on the Nasdaq on Friday, with its stock surging over 19% to close at $160.95. This marked a significant milestone for the company, as its market cap exceeded $2 trillion. However, according to TD Securities, the most crucial dates for SpaceX are yet to come.

Peter Haynes, the firm’s head of index and market structure, emphasized that SpaceX’s public debut is just the beginning of a larger timeline for the company. He highlighted the importance of when SpaceX will be added to key indexes such as the S&P Total Market Index, MCI Global Index, Russell Indexes, and the Nasdaq 100 early this summer.

Haynes pointed out that July 6th will be a crucial date, as it is when Nasdaq will rebalance the Nasdaq 100 Index to incorporate SpaceX’s IPO shares. He also emphasized the significance of when indexes will adjust for the additional shares that will become freely tradable in the future.

In a recent development, the S&P 500 Index Committee announced that SpaceX will not be fast-tracked into the index, and the company will need to trade on the market for at least one year to become eligible. Haynes described this decision as controversial and highlighted the importance of upcoming index events in reflecting the freely tradable shares in the benchmarks.

Following SpaceX’s IPO, Haynes commended the industry’s infrastructure for supporting the equity trading business, stating that the industry passed the test during the company’s market debut. He emphasized the need for investors to closely monitor SpaceX’s inclusion in key indexes and how it could impact their investment decisions.

As SpaceX continues to make waves in the market, investors are advised to stay informed about the company’s progress and its impact on the broader market indexes. The upcoming index events will play a crucial role in determining the trajectory of SpaceX’s stock and its influence on the investment landscape.