SpaceX joining FTSE Russell US indexes requires $3 billion buying
SpaceX, Elon Musk's rocket company, is joining the FTSE Russell US indexes right after its IPO earlier this month.
This move means big investment funds will need to scoop up about $3 billion worth of SpaceX shares, making it a bigger deal for anyone following the market.
Closing auction could spur SpaceX volatility
Because so many funds will buy in at once, mostly during the closing auction, SpaceX's stock price could bounce around in the short term.
The stock has already had a wild ride: it launched at $135, shot up 67% to $225.64, then dropped back to $153 (still above its IPO price).
Even with a huge $2 trillion market cap and only $100 billion in public shares, SpaceX isn't in the S&P 500 yet because it lost nearly $5 billion last year.
For now, its sky-high valuation is getting lots of attention: it's trading at 107 times its 2025 sales!