Spacex is About to Join a Major Index but the Stock is Still Falling

Dow Jones
Jun 26

SpaceX stock was sliding again on Friday, putting the rocket and AI company on track to extend a recent rough stretch that has wiped out nearly all of its gains since its record-breaking initial public offering.

Shares dropped 2% to $149.98 ahead of the opening bell. If that holds it would be the stock's first close below $150. SpaceX opened at that level when it made its trading debut on June 12.

Still, SpaceX could soon get a boost because it is set to join the Russell 1000 index after Friday's closing bell. FTSE Russell confirmed in May that it had relaxed its rules to fast-track the entry of large IPOs.

Joining an index like the Russell 1000 tends to boost a stock, because passive index funds have to load up on shares when a reshuffle happens.

FTSE Russell uses a variety of metrics to assess determine if stocks eligible for membership of the Russell 1000 Growth Index, the Russell 1000 Value Index, or both.

SpaceX will be added to the Russell 1000 as 90.4% growth and 9.6% value. It will be re-evaluated when another reshuffle takes place in December.

The stock popped following the IPO but has slumped 24% over the past six trading sessions through Thursday's close, with investors rethinking a lofty valuation amid worries that the AI boom could fizzle out.

That selloff has cost CEO Elon Musk his trillionaire status. OpenAI is considering delaying its IPO following SpaceX's struggles, The New York Times reported on Thursday, citing people familiar with the matter.

OpenAI didn't respond to a request for comment from Barron's.

Write to George Glover at george.glover@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

(END) Dow Jones Newswires

June 26, 2026 06:43 ET (10:43 GMT)

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