SpaceX Joins the Nasdaq-100. Has the Index Become Too Risky to Track?

The article argues that the Nasdaq-100 may be becoming a less attractive index for passive investors after adding SpaceX, a highly valued but still unprofitable company. The author says SpaceX’s inclusion increases the index’s risk because its valuation appears stretched relative to fundamentals, and a correction in the stock could weigh on index-tracking products like QQQ. The piece compares long-term performance, noting QQQ has doubled over five years versus about 72% for the S&P 500, but warns that recent gains have been driven by AI-fueled enthusiasm and could reverse if expensive tech names re-rate lower. Overall, the article is a bearish commentary on Nasdaq-100 valuation and a mild endorsement of broader, more diversified alternatives such as the S&P 500 or value stocks.