SpaceX joined the Nasdaq-100 index in a historic move, but the stock price fell amid investor concerns. This may be linked to its high valuation and increased capital expenditures.

SpaceX made a significant entry into the Nasdaq-100 index amidst significant market attention. The move may be seen as a validation of the company's rapid growth trajectory, but the stock price responded negatively, dropping 5% or more  in the first day of trading. The price fall comes against a backdrop of concerns about the company's very high valuation, with a price-to-sales ratio of 109, compared to a sector average of 9 [doc9].

This high valuation is further complicated by SpaceX's unprofitable performance, with a net loss of $1.69 per share in 2025 and increasing capital expenditures that may strain cash flows in the future [doc9]. Starlink, SpaceX's more profitable segment, will not be enough to offset total company spending.

As a result, investors may be cautious about the outlook for SpaceX stock, especially now that it is part of the Nasdaq-100, an index that could further amplify price volatility. BlackRock's entry into the Nasdaq-100 ETF market may further increase competition for investors.

SpaceX Stock Falls After Joining Nasdaq-100 Index