The stock of SpaceX (SPCX) is being added to the Russell 1000 index on June 29.
The Russell 1000 Index tracks the 1,000 largest publicly traded companies in the United States. The inclusion of SpaceX come as its stock is fast tacked into several market indices.
SpaceX is scheduled to join the Nasdaq 100 index of large-cap technology stocks on July 7 of this year.
Normally, companies have to wait months or even years before their stocks are added to indices, and they often have to meet strict requirements such as achieving profitability.
But many indices are waving the traditional requirements and adding SpaceX’s stock immediately due to its size and influence on the overall stock market.
Being added to various indices is typically positive for a company as mutual funds and exchange-traded funds (ETFs) that track the index are required to buy the stock.
However, not every index is adding SPCX stock right away. S&P Global (SPGI) has decided against fast-tracking SpaceX into its indexes, keeping it out of the benchmark S&P 500.
S&P Global, and several Wall Street analysts, have expressed concerns about SpaceX’s lack of profitability and the volatile nature of its stock.
Shares of SPCX were priced at $135 U.S. in the company’s initial public offering (IPO) on June 12. The stock rocketed up to $225.64 U.S. per share before pulling back sharply.
There are also concerns about SpaceX’s $2 trillion U.S. market capitalization given that the commercial space company has yet to turn a profit.
SPCX stock is currently trading at $153.23 U.S. per share.
