Rocket Lab Shares Tumble 11% After Nasdaq 100 Inclusion as SpaceX IPO Drains Demand
RKLB•Rocket Lab will join the Nasdaq 100 index on June 22, but its shares unexpectedly dropped nearly 11% post-announcement, underperforming peers. The stock slid further around 6.5% this week as investors rotated into newly public SpaceX’s $75 billion IPO, despite a buy recommendation from Matthew Tuttle.
1. Nasdaq 100 Inclusion and Effective Date
Nasdaq announced that Rocket Lab will be added to the Nasdaq 100 as part of its quarterly rebalancing effective June 22, replacing Charter Communications, Cognizant Technology, Insmed, Verisk Analytics and Zscaler. The inclusion alongside Astera Labs, CoreWeave, Nebius Group and Teradyne could boost Rocket Lab’s visibility and attract passive fund flows.
2. Stock Price Reaction and Investor Rotation
Following the index announcement, Rocket Lab shares plunged nearly 11% in one session, underperforming other additions. The stock fell an additional 6.5% this week as investors shifted capital into SpaceX’s historic IPO, which raised $75 billion at $135 per share, drawing demand away from smaller space peers.
3. Analyst Buy Recommendation
Despite recent volatility, Matthew Tuttle has maintained Rocket Lab as a buy, listing it among his top picks alongside Occidental Petroleum and SolarEdge. He cites long-term growth prospects and sector momentum as reasons to hold through short-term headwinds driven by market rotations.
