Key Takeaways

  • SpaceX launched its public offering at $135 per share, establishing an $1.8 trillion market valuation before Friday’s trading kickoff

  • The space industry saw widespread gains, including Rocket Lab, EchoStar, AST SpaceMobile, and Firefly Aerospace

  • Nasdaq 100 will add Rocket Lab effective June 22, alongside four artificial intelligence-focused companies

  • Adobe shares tumbled nearly 7% following earnings beat, pressured by CFO’s announced move to Marvell Technology

  • Lennar shares declined after the homebuilder reduced its annual delivery guidance, blaming elevated mortgage rates and softening demand

SpaceX established its IPO pricing at $135 per share Thursday evening, assigning the aerospace company an approximate $1.8 trillion market capitalization. Trading was scheduled to commence Friday, with market observers anticipating a gradual price discovery process.

The public offering triggered widespread enthusiasm across space-sector equities before market opening.

EchoStar advanced 5.7%. Investors view the satellite operator as a SpaceX surrogate following an agreement to transfer spectrum rights to Elon Musk’s venture in return for approximately 2% equity stake.

Firefly Aerospace climbed 6.7%. AST SpaceMobile registered a 3.8% increase. Virgin Galactic posted roughly 6% gains, participating in the widespread commercial space industry momentum.

Nasdaq 100 Announcement Boosts Space Sector

Rocket Lab surged 6.6% following Nasdaq’s announcement that the company will enter the Nasdaq 100 on June 22 during the scheduled quarterly index adjustment.

Four artificial intelligence-related companies similarly earned Nasdaq 100 inclusion. Astera Labs increased 3.7%, CoreWeave jumped 4.2%, Nebius climbed 4.4%, and Teradyne edged up 0.9%.

Index additions generally stimulate buying from passive funds and exchange-traded products tracking the benchmark, potentially providing price support.

Adobe Declines Despite Earnings Performance

Adobe retreated 6.6% despite delivering second-quarter adjusted earnings of $5.96 per share on $6.62 billion revenue, surpassing analyst projections across both metrics.

The software company elevated its annual outlook, forecasting revenue between $26.5 and $26.6 billion with adjusted earnings per share ranging from $24.35 to $24.45.

Notwithstanding the positive results, market participants appeared disappointed by insufficient evidence of artificial intelligence revenue acceleration.

Additional selling pressure stemmed from CFO Dan Durn’s announced transition to semiconductor and networking firm Marvell Technology.

Advanced Micro Devices gained 1.5% to $495.70 after Citi elevated the chipmaker to Buy from Neutral, raising its target price to $575 from $460.

Homebuilders Under Pressure From Weakening Outlook

Lennar declined 1.9% after lowering its annual home delivery projection to 82,000-83,000 units, down from the previous estimate of approximately 85,000.

The homebuilder attributed the revision to elevated mortgage rates, affordability challenges, consumer hesitation, and geopolitical instability.

Second-quarter revenue fell short of Wall Street projections, intensifying investor concerns.

Lennar projected third-quarter new orders between 21,000 and 22,000 homes with deliveries of 20,500-21,500 units, both trailing consensus forecasts.

Executive leadership highlighted rising energy costs and resurgent inflation as persistent obstacles to housing market demand.

First Advantage rose 5% after S&P Dow Jones announced the company will substitute Kennedy-Wilson Holdings in the S&P SmallCap 600, taking effect June 16.

The post SpaceX IPO Sends Space Stocks Soaring: Rocket Lab, Firefly, and EchoStar Rally on Market Debut appeared first on Blockonomi.