SpaceX stock falls over 20% from IPO price to $107.01, market value erases $1.2 trillion, over 900 million
SpaceX shares dropped more than 5.7% intraday on July 28 to a low of $107.01, 20.73% below the $135 IPO price, before rebounding to $116. The company's market value has lost $1.2 trillion from its peak, one of the largest such declines in history. Geopolitical turmoil and AI spending concerns weigh on tech stocks, while over 900 million shares become eligible for trading on August 6.
SpaceX shares fell more than 5.7% intraday on July 28, hitting a low of $107.01, which is 20.73% below the IPO price of $135. The stock later rebounded, trading up over 2% at $116. On the third day of trading, June 16, SpaceX shares had reached $225.64. The recent decline has erased a cumulative $1.2 trillion from the company's total market value, making it one of the largest market value losses in history.
Recent geopolitical instability, combined with market concerns that massive spending in the artificial intelligence ecosystem is inflating demand and valuations, has pressured shares of several large technology companies. SpaceX's biggest future market opportunity also comes from the AI sector. According to the lock-up schedule, up to more than 900 million shares will enter the market starting August 6.
Over the past month, SpaceX's high valuation and the potential selling pressure ahead have attracted a large number of short sellers.
Despite a largely successful Starship test flight last Friday, the selling pressure on the stock has intensified. During the test, SpaceX deployed upgraded satellites for its Starlink communications network, and the rocket largely returned safely to Earth. Starship is central to expanding the Starlink network, executing crewed lunar missions and deep-space exploration, and future plans to place data centers in orbit. However, the program has been fraught with uncertainty, including multiple explosions, technical failures, and delays.