TLDR
- SpaceX priced its IPO at $135 per share, valuing the company at $1.8 trillion ahead of Friday’s trading debut
- Space stocks rallied broadly, with Rocket Lab, EchoStar, AST SpaceMobile, and Firefly Aerospace all gaining
- Rocket Lab was added to the Nasdaq 100, effective June 22, along with four AI-linked stocks
- Adobe fell nearly 7% despite beating earnings, as its CFO announced a departure to Marvell Technology
- Lennar dropped after cutting its full-year home delivery forecast, citing high mortgage rates and weak demand
SpaceX priced its IPO at $135 per share on Thursday, valuing the company at roughly $1.8 trillion. The stock was set to begin trading on Friday, though an opening price was expected to take time to establish.
The IPO created a wave of buying across space-related stocks ahead of the open.
EchoStar rose 5.7%. The satellite company is seen as a proxy for SpaceX after striking a deal to sell spectrum to Elon Musk’s company in exchange for about 2% of SpaceX stock.
Firefly Aerospace gained 6.7%. AST SpaceMobile added 3.8%. Virgin Galactic rose around 6%, joining a broad rally across commercial space names.
Space Stocks Get a Lift From Nasdaq 100 News
Rocket Lab climbed 6.6% after Nasdaq confirmed it would join the Nasdaq 100 on June 22 as part of a quarterly rebalancing.
Four AI-linked stocks also received Nasdaq 100 inclusion notices. Astera Labs rose 3.7%, CoreWeave gained 4.2%, Nebius added 4.4%, and Teradyne ticked up 0.9%.
Index inclusion typically drives demand from funds and ETFs that track the index, which can support stock prices.
Adobe Falls Despite Strong Earnings
Adobe dropped 6.6% after reporting second-quarter adjusted earnings per share of $5.96 on revenue of $6.62 billion, beating Wall Street estimates on both.
The company also raised its full-year guidance, projecting revenue of $26.5 to $26.6 billion and adjusted earnings per share of $24.35 to $24.45.
Despite the strong numbers, investors appeared to be looking for bigger signs of AI revenue growth.
The news of CFO Dan Durn leaving for chip and networking company Marvell Technology also weighed on the stock.
Advanced Micro Devices rose 1.5% to $495.70 after Citi upgraded the chipmaker to Buy from Neutral, lifting its price target to $575 from $460.
Housing Stocks Slide on Weak Outlook
Lennar fell 1.9% after cutting its full-year home delivery forecast to 82,000 to 83,000 homes, down from a prior estimate of around 85,000.
The company cited high mortgage rates, affordability pressure, cautious consumers, and geopolitical uncertainty.
Second-quarter revenue missed Wall Street expectations, adding to investor concern.
Lennar forecast third-quarter new orders of 21,000 to 22,000 homes and deliveries of 20,500 to 21,500, both below consensus estimates.
Management pointed to higher energy prices and renewed inflation as ongoing headwinds for housing demand.
First Advantage rose 5% after S&P Dow Jones announced it would replace Kennedy-Wilson Holdings in the S&P SmallCap 600, effective June 16.
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