GME.US will be included in the FTSE Russell 1000 large-cap index (Russell 1000 Index),), while AMC cinema (AMC.US) will not be selected, although its market capitalization is larger than that of Playstation.
The data deadline for the FTSE Russell confirmation index is May 7, when AMC shares were trading at $9.51, worth about $4.3 billion. In a short period of time since then, the stock has risen 468 per cent to $54.06 and will become Russell's largest market capitalization constituent in 2000. Since May 7, the market capitalization of game stations has risen by only 30%.
The rise of "Meme stocks" means that this year's FTSE Russell's rebalancing strategy will be different from the usual. Some media pointed out that the overall quality of the Russell 2000 index will continue to deteriorate, with the proportion of profitable companies at the lowest level in more than 20 years, while seven consecutive quarterly losses of the AMC cinema chain will not help the quality of the index.
While the volatility of game stations has had a significant impact on the Russell 2000 and its associated ETF, it has little impact on the index in the heavyweight Russell 1000 compared with companies such as AAPL.US (AAPL) and MSFT.US (MSFT).