SpaceX’s Elon Musk-led shares went into selling pressure on Monday, falling to a new post-IPO low and briefly slipping below $139 during trading. The stock fell to a new post-IPO low and briefly slipped below $139, under pressure from investors who have been watching for more pressure Monday as the company’s stock fell to a new low after a record low post-IPO low.
SpaceX shares fell as low as $137.68 late Monday before recovering slightly to trade around $139, bringing the shares close to its $135 IPO price. Its decline means nearly 40 percent from its post-IPO high, meaning more than $800 billion in market value has evaporated since hitting record highs in June.
Even as SpaceX stock continues to rise, investors are wondering how the company’s premium valuation has been impacted by a sky-high stock market rally following its public listing. And tech stocks are also under pressure, and share lock-up expirations are coming up again, so that investors are worried.
But the recent correction is a big one, experts say, and it doesn’t necessarily mean SpaceX’s core business is getting worse. Still, it is a leader in reusable rocket technology, satellite internet service through Starlink, and space exploration. The Wall Street analysts on the stock are still positive on the stock and they still see price targets well above the current levels.
Investors will also be on the lookout for future milestones such as Starship test flights and the continued expansion of the Starlink satellite network. Successfully working these projects in the future may be very important in rebuilding investor confidence, and a long-term development of these projects will also be important to investors, analysts say.
The stock has fallen despite the broader U.S. equity market being relatively resilient, and it demonstrates how far in the past one of the year’s most eagerly awaited IPOs has fallen. Some analysts point to profit booking following the initial rally, and others say the market is adjusting expectations for a company that is still spending so much money on growth.
Despite the recent decline, many institutional investors remain optimistic about SpaceX's long-term prospects given its success in commercial space launches, satellite communications, and advanced aerospace technologies. But they do warn that the stock may remain volatile as investors assess its current performance and its expansion plans.
With shares now trading at or close to their IPO price, market participants will closely monitor the company’s development, outlook for the future, earnings expectations, and broader market conditions to determine whether the recent drop in shares could be a buying opportunity or a sign of further weakness ahead.
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