SpaceX’s shares fell below $135, the price set by CEO Elon Musk ahead of its June 12 IPO that raised nearly $86 billion. The stock dipped below $133 per share on Wednesday but later rebounded to trade near the $135 level. This decline follows a steady drop in the stock’s value since the company’s public debut. SpaceX’s shares initially surged above $200 in the days following the IPO, briefly rivaling tech giants like Amazon and Microsoft in valuation. However, the stock has lost value every week since hitting that peak. Some of the volatility is attributed to the fact that only 4% of SpaceX’s total shares are publicly traded on the Nasdaq. This small float, combined with the company’s high-profile status, has led to significant price swings in the first month of trading. Source: techcrunch
The market appears to be recalibrating its view of Musk’s ambitious vision for SpaceX, contributing to a broader tech stock decline. Not only has SpaceX’s stock declined, but the company’s bonds issued post-IPO are also underperforming. A prolonged downturn could have wider implications, as the stock price reflects investor sentiment toward Musk’s futuristic promises. SpaceX’s IPO has also set the stage for other Big Tech companies like Anthropic and OpenAI to pursue public offerings. Both have filed confidentially for an IPO, though no dates have been set. SpaceX’s stock is being closely watched to gauge the potential success of these upcoming public offerings. Source: techcrunch
SpaceX is set to face another test of its stock’s resilience with the upcoming Starship rocket test launch. This will be the first flight since a booster failure in May. The company does not plan to recover the Starship booster or upper stage, instead opting to simulate a landing in the Gulf of Mexico. Both parts of the rocket system will likely end in an explosion regardless of flight performance. Source: techcrunch
