Rocket Lab (RKLB) Overtakes SpaceX (SPCX) and Aims for Nasdaq 100

▲ Nasdaq 100, SpaceX (SPCX), Rocket Lab (RKLB) / AI generated image

Amidst the fervor for SpaceX (SpaceX, SPCX) listing, an aerospace stock has emerged to enter the Nasdaq 100 index first. Rocket Lab (Rocket Lab, RKLB) has risen as a better investment alternative than SpaceX, leveraging its index inclusion effect and growth businesses.

According to investment media outlet 24/7 Wall Street on June 20 (local time), Nasdaq has decided to include Rocket Lab in the Nasdaq 100 index starting June 22. While SpaceX is expected to be included in the index in early July, Rocket Lab will enter the Nasdaq 100 index first as a pure aerospace stock.

Nasdaq has moved to change regulations to expedite the index inclusion process for newly listed mega-cap companies. The market interpreted this move as a response to SpaceX's large initial public offering (IPO). However, the first beneficiary company is Rocket Lab, not SpaceX.

Rocket Lab has been added to the index inclusion list along with Nebius Group (Nebius Group, NBIS), CoreWeave (CoreWeave, CRWV), Teradyne (Teradyne, TER), and Astera Labs (Astera Labs, ALAB). Funds and Exchange Traded Funds (ETFs) that track the Nasdaq 100 index must purchase the included stocks. Analysis suggests that hundreds of billions of dollars in tracking funds could create short-term supply and demand.

Stock indicators also support Rocket Lab. Rocket Lab recorded a 52-week high of $151 at the end of May, then fell by about 30%. Nevertheless, its year-to-date gain is approximately 53%. SpaceX rose about 37% after its IPO, and its recent decline from its peak is reported at 18%.

The business structure is also differentiated. Rocket Lab's space systems division already accounts for most of its revenue. It is expanding its business pillars with satellite manufacturing, components, software, and defense contracts, reducing its reliance on launch services. SpaceX's core growth drivers are its launch business and Starlink.

24/7 Wall Street evaluated that while SpaceX is an excellent company, its listing price already reflects expectations of years of success. Lock-up expiry, bridge loan repayment, and the burden of raising additional capital were also cited as short-term variables. In contrast, Rocket Lab is emerging as an aerospace investment alternative, driven by its Nasdaq 100 index inclusion and business diversification.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*