SpaceX stock has cratered nearly 23% since the company joined the Nasdaq-100

SpaceX's stock has taken a significant hit, plummeting nearly 23% since joining the Nasdaq-100. This sharp decline is likely to raise concerns among investors, particularly those with exposure to the company's stock through index funds or active management strategies. The recent sell-off follows a disappointing test flight abort for SpaceX's Starship rocket, which may have contributed to the negative sentiment.

The Nasdaq-100 index is heavily weighted towards technology and growth stocks, and SpaceX's inclusion in the index had likely drawn in investors seeking exposure to innovative and high-growth companies. However, the company's stock performance has been volatile, and this recent decline may indicate a reassessment of its growth prospects or risk profile. It's worth noting that SpaceX is a private company, and its stock is not directly traded on public markets, but rather through private transactions and secondary market sales.

Looking ahead, investors should watch for updates on SpaceX's Starship program and its future test flights, as well as any developments that could impact the company's growth trajectory or funding requirements. Additionally, investors in index funds or ETFs that track the Nasdaq-100 may want to monitor the impact of SpaceX's stock performance on the broader index and rebalance their portfolios accordingly. The company's next moves and announcements will be closely watched by investors and industry observers.

Originally reported by cnbc.com. FundNews adds analysis for finance & markets readers.