Key facts
- SpaceX is scheduled to go public this week, trading under the ticker SPCX.
- The company's initial valuation is projected to be around $1.75 trillion.
- SpaceX could be added to the Nasdaq-100 index shortly after its public debut.
- Rocket Lab and four AI companies are also expected to join the Nasdaq-100.
- The Invesco QQQ Trust, which tracks the Nasdaq-100, has seen a 17% increase year-to-date.
SpaceX is poised to join the Nasdaq exchange this week with an anticipated valuation of approximately $1.75 trillion, under the ticker symbol SPCX. Following recent rule changes, the company could be integrated into the Nasdaq-100 index as soon as 15 trading days after its debut. This expansion of the index will also include Rocket Lab and four companies focused on artificial intelligence.
The Invesco QQQ Trust, a popular exchange-traded fund that mirrors the Nasdaq-100, has gained 17% this year, outperforming the S&P 500's 8% rise. However, the ETF currently exhibits an average price-to-earnings ratio of 36. The addition of SpaceX, which is still unprofitable, could heighten the index's overall risk and volatility. Investors considering the QQQ ETF should be aware of the potential for significant losses during market downturns, as demonstrated by its 33% drop in 2022 compared to the S&P 500's 19% decline.