SpaceX wipes out post IPO gains as shares fall below $135
Shares briefly fell to $132.15 on Wednesday, more than 40% below their June peak, before recovering to close slightly above the $135 offering price.
SpaceX shares fell below their initial public offering price for the first time on Wednesday, erasing the gains generated since the rocket company’s blockbuster market debut last month.
The stock dropped as low as $132.15 during the session, falling below its $135 offering price, before recovering to close at $135.27. Shares opened at $150 during their first day of trading on June 12.
The decline marks a sharp reversal from SpaceX’s initial rally. The stock reached a peak of $225 in mid June, meaning the pullback briefly exceeded 40% and erased more than $1 trillion from the company’s market value.
SpaceX rose 19% during its public debut, initially giving Elon Musk’s rocket and satellite company a market capitalization of about $2.1 trillion. The shares have since moved steadily lower amid broader weakness in technology stocks and concerns over elevated valuations.
The news moving money, markets, and the world—before your day starts.
Daily. Free. Join 34,000+ readers across crypto, finance, and policy.
The selloff has also pushed SpaceX below Broadcom in the ranking of the world’s largest publicly traded companies. The company had briefly climbed among the largest US stocks following its IPO and subsequent inclusion in the Nasdaq 100.
Wall Street remains divided over SpaceX’s valuation. Morgan Stanley has assigned the shares a $300 price target, while JPMorgan set a target of $225. Morningstar has estimated a substantially lower fair value of $63 per share.
Investors are also awaiting SpaceX’s next Starship test and its first quarterly earnings report as a public company. The expiration of restrictions preventing insiders from selling shares could add further supply to the market following the earnings release.