SpaceX Is Joining the Nasdaq-100 This Week. What This Means for Invesco QQQ Investors.

Space Exploration Technologies (NASDAQ: SPCX), otherwise known as SpaceX, is joining the Nasdaq-100 index today. This means that exchange-traded funds (ETFs) tracking the index, including the Invesco QQQ Trust (NASDAQ: QQQ), will soon own the stock indirectly.

J.P. Morgan, part of JPMorgan Chase, expects this index inclusion to trigger about $4.3 billion in passive buying from index-tracking funds. Although this will serve as a clear near-term demand catalyst for SpaceX, Invesco QQQ Trust investors are also getting exposure to a founder-controlled company with a limited number of publicly traded shares (float) and an unprofitable business.

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Why SpaceX's Nasdaq-100 entry matters for QQQ investors

Invesco QQQ Trust tracks the Nasdaq-100, which includes the 100 largest non-financial companies listed on Nasdaq.

SpaceX's quick entry became possible because the Nasdaq-100 changed its inclusion rules in 2026. Starting May 1, large newly public companies like SpaceX can be added after just 15 trading days if they rank among the top 40 eligible Nasdaq-listed companies. However, if only a limited number of shares are publicly traded, Nasdaq can limit how much weight the stock gets in the index. The change reflects today's market, where some very large companies stay private for longer and list with only a limited number of shares available for public investors.

SpaceX's Nasdaq-100 inclusion will give Invesco QQQ Trust investors exposure to the space, satellite broadband, and artificial intelligence (AI) infrastructure company before S&P 500 (SNPINDEX: ^GSPC) index fund investors get it automatically. Reuters reported that SpaceX would need at least 12 months of public trading history, generally accepted accounting principles (GAAP) profitability, and a public float of at least 10% before it can be considered for inclusion in the S&P 500. However, according to Reuters' estimates, SpaceX's public float is only 3% to 4%. The company also posted a $4.94 billion net loss in 2025.

Since only a small portion of SpaceX shares is available for public trading, buying by funds that track the Nasdaq-100 can have a bigger effect on the stock price. But once that buying is complete, the same limited supply of tradable shares can also make the stock move more sharply if investors start selling. So, Invesco QQQ Trust investors should ask whether SpaceX's Nasdaq-100 inclusion has already lifted the stock enough to limit its near-term gains.

Starlink is the key business to watch

The best reason for Invesco QQQ Trust investors to take SpaceX seriously is its Starlink satellite internet business. SpaceX generated $18.7 billion of revenue in 2025, with the Starlink-powered connectivity business accounting for about 60% of total sales. The business had about 10.3 million users across roughly 9,600 satellites at the end of the first quarter.

Starlink is SpaceX's clearest profit engine and is helping offset losses from the company's other growth initiatives. In the first quarter, the connectivity segment generated $1.2 billion of operating profit. But SpaceX still reported a total operating loss of $1.9 billion on $4.7 billion of revenue.

SpaceX's reusable Falcon 9 rocket has helped make the company a leading launch provider for NASA, the Pentagon, and commercial customers. According to Reuters, SpaceX has gone from one launch in 2006 to more than two launches per week, giving it a much faster launch pace than its rivals.

The Federal Communications Commission has approved SpaceX to deploy another 7,500 second-generation Starlink satellites, bringing the approved Gen2 satellite count to 15,000. More satellites should give Starlink more network capacity, which can support faster broadband and mobile connectivity service, as well as growth in aviation, maritime, enterprise, and government markets.

Additionally, if the next-generation reusable rocket system, Starship, works at commercial scale, it could lower launch costs and help SpaceX deploy larger, higher-capacity satellites faster.

Investors are getting growth, but also uncertainty

The biggest risk is that Invesco QQQ Trust is being required to buy an expensive story. SpaceX currently trades at nearly 81 times trailing-12-month sales, even though it is a money-losing business.

SpaceX's AI business could become a major long-term growth engine, especially after Anthropic agreed to pay SpaceX $1.25 billion per month through May 2029 for compute capacity. But investors should not treat that as guaranteed revenue. Reuters reported that either company can terminate the agreement with 90 days' notice, and that fees are lower during the ramp-up period. The company is also spending heavily on an AI infrastructure business that is not yet profitable. In the first quarter, the AI segment reported an operating loss of nearly $2.5 billion on $818 million of revenue.

Additionally, Chief Executive Officer Elon Musk accounts for 82.3% of SpaceX's voting power. Hence, although public investors may own the stock, they will have little control over major company decisions. So, Invesco QQQ Trust investors are getting automatic exposure to a company where major decisions will remain heavily shaped by Musk, not by public shareholders.

NASA's inspector general said SpaceX's Artemis III Starship work has faced delays, while refueling the vehicle in space remains one of the biggest technical challenges. With Starship being crucial to SpaceX's plan to launch more satellites at lower cost and support NASA's moon missions, it also adds to the company's execution risk.

Invesco QQQ Trust investors should not panic over one index addition. SpaceX will likely be a modest initial QQQ position because of its limited float. But investors should recognize that QQQ is becoming a slightly more aggressive fund, with higher valuation risk, more execution risk, and more Musk-specific governance risk.

While SpaceX's addition is not a reason to abandon the ETF, it should also remind investors that the Invesco QQQ Trust is not a broad-market fund. Investors should watch Starlink profits, AI losses, Starship progress, and future earnings reports before assuming this index addition is automatically good news.

JPMorgan Chase is an advertising partner of Motley Fool Money. Manali Pradhan, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.