This Space Stock Will Beat SpaceX to the Nasdaq-100 — And It’s the One to Buy

Space investing is entering a new phase. SpaceX‘s (NASDAQ:SPCX) blockbuster IPO quickly became the largest and one of the most anticipated public listings in market history, prompting the Nasdaq exchange to revise its inclusion rules to speed the company’s path into its major indexes.

A large, multi-stage rocket, predominantly orange and white, is shown during liftoff from its launchpad. Bright orange and yellow flames erupt from its base, surrounded by billowing clouds of white and light-orange exhaust smoke. A tall, intricate metal launch tower is visible to the right of the rocket, partially obscured by the smoke. The sky above is a gradient of deep blue to a lighter, slightly purplish hue on the right horizon. — 3DSculptor / iStock via Getty Images

Those rule changes will likely accomplish their goal. SpaceX appears on track to join the Nasdaq-100 in early July, bringing automatic buying from index funds and ETFs that track the benchmark. Yet despite all the attention surrounding SpaceX, it won’t be the first space stock in the Nasdaq-100. In fact, another will enter the index beginning Monday. And for investors looking to buy a space stock today, it looks like the better choice.

Rocket Lab Gets There First

Nasdaq’s decision to fast-track newly listed mega-cap companies was widely viewed as a response to the unprecedented size of the SpaceX IPO. The move ensures it won’t have to wait through the traditional seasoning period of three months or one full quarter of trading before becoming eligible for inclusion.

But while SpaceX may be the reason the rules changed, Rocket Lab (NASDAQ:RKLB) is the company benefiting first. Nasdaq selected the space stock on June 11 to join the Nasdaq-100, along with Nebius Group (NASDAQ:NBIS), CoreWeave (NASDAQ:CRWV), Teradyne (NASDAQ:TER), and Astera Labs (NASDAQ:ALAB).

Inclusion matters because index-tracking funds are required to buy shares. According to Nasdaq data, hundreds of billions of dollars track the benchmark directly or indirectly. That creates immediate demand for stocks entering the index.

For Rocket Lab, that buying pressure could provide a short-term tailwind. Yet the real investment case goes much deeper than index membership.

The Numbers Favor Rocket Lab

Rocket Lab’s biggest challenge entering 2026 was valuation. Shares climbed rapidly and reached a 52-week high of $151 in late May before retreating nearly 30%. That pullback has changed the risk-reward equation.

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Even after the decline, Rocket Lab stock remains up roughly 53% year-to-date. More importantly, the company continues expanding across multiple growth markets instead of relying solely on launch services.

Here’s what the numbers tell us:

Metric	Rocket Lab	SpaceX
Public market history	Established public company	Newly public
YTD performance	+53%	+37% from IPO
Distance from recent high	-29%	-18%
Growth drivers	Launch, satellites, space systems, defense	Primarily launch and Starlink
Nasdaq-100 status	To be added June 22	Expected early July

Rocket Lab’s Space Systems segment now generates the majority of revenue, giving the company exposure to satellite manufacturing, components, software, and defense contracts. That creates multiple paths to growth.

SpaceX, of course, remains an extraordinary business, but extraordinary businesses can still become poor investments when investors pay too much.

SpaceX Still Has More to Prove

The biggest issue with SpaceX isn’t the quality of the company; it’s the price investors are being asked to pay. The stock debuted at a valuation that already assumes years of future success. That’s a difficult starting point for shareholders because expectations leave little room for mistakes.

Granted, Starlink continues growing and the company’s launch dominance remains intact. Those are real advantages. But investors should remember that the IPO excitement has already pulled forward much of the potential upside. The stock also faces several near-term headwinds, including lockup expirations and repayment of a reported bridge loan, which could create pressure for additional capital raising or dilution. There’s also the historical underperformance mega IPOs tend to endure.

Rocket Lab faces no such IPO overhang. Instead, management can focus on executing its growth strategy, expanding defense relationships, scaling satellite manufacturing, and preparing its Neutron rocket for launch.

Starting from a much smaller base also gives Rocket Lab more room to grow.

Key Takeaway

In short, both companies operate in one of the market’s most exciting industries. But investing is about future returns, not admiration for a business.

Rocket Lab will become the first pure-play space stock in the Nasdaq-100 when it joins the index Monday. Its recent 30% pullback has reduced valuation concerns somewhat, while its multiple growth engines provide several opportunities to expand revenue and cash flow.

Meanwhile, SpaceX is expected to follow it into the Nasdaq-100 in early July thanks to Nasdaq’s new inclusion rules. Regardless, the stock still carries the burden of proving its massive IPO valuation is justified.

For investors seeking space exposure today, Rocket Lab looks like the better launch vehicle.

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Rocket Lab Gets There First

The Numbers Favor Rocket Lab

SpaceX Still Has More to Prove

Key Takeaway

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