SpaceX slips ahead of Russell 1000 inclusion

SpaceX shares fell more than 1% Thursday, extending a pullback after a $154.54 close in the previous session. The stock briefly traded below its $150 IPO price earlier this week. SpaceX is scheduled to join the Russell 1000 index on Friday.

The stock opened at $135 on June 12, rose above $225 in early sessions and has since retreated. Trading has shown larger swings since the mid-June listing.

Data from Vanda Research show retail investors have been net buyers every trading day since the listing.

KeyBank initiated coverage without a price target and wrote that the company ‘possesses significant disruptive growth avenues, though we believe this is reflective in [the] current valuation and risk/reward appears balanced, in our view.’ Susquehanna began coverage with a Neutral rating and a $170 price target.

Within the Russell index framework the stock will be classified roughly 90.4% growth and 9.6% value.

After the IPO the company returned to the debt market with a bond offering that drew about $89 billion of demand. The notes carry coupons between 5.35% and 6.65% and maturities from 2031 to 2056. Proceeds are expected to repay a bridge loan, cover fees and support general corporate purposes. The refinancing replaces a $20 billion bridge loan linked to debt acquired in February.

SpaceX is expected to report its first earnings as a public company in late July or early August. Analysts will watch Starlink subscriber counts and spending on the Starship program. Morningstar noted, ‘Starlink is the biggest revenue and profit driver for the company right now.’

Wealth trackers show the founder’s net worth fell to about $946 billion from roughly $1.11 trillion earlier in the month after declines in SpaceX and Tesla shares.

Since the IPO the initial rally and subsequent pullback have prompted questions about valuation and the capital required for satellite and artificial intelligence projects. The upcoming earnings report and the company’s inclusion in the Russell 1000 are scheduled events that may affect demand for the stock.