SpaceX Slides 6% In First Decline Since IPO—Here’s Why
SpaceX shares fell more than 6% on Thursday, signaling that the excitement surrounding the company’s historic initial public offering (IPO) may be starting to fade.
The stock dropped 6.5% to $178.50 per share after also declining in the previous trading session. Despite the recent pullback, SpaceX shares are still trading more than 30% above their IPO price of $135.
The decline could reduce SpaceX’s market value by over $150 billion, bringing it to approximately $2.52 trillion if losses continue.
Market experts say the drop is not unusual. According to IPOX Schuster analyst Kat Liu, investors often sell shares to lock in profits after a strong IPO performance. She noted that SpaceX has experienced a highly active and shortened trading week following the largest IPO in history.
The weakness wasn’t limited to SpaceX. Several other space-related companies also saw their stocks fall. Shares of Rocket Lab and Planet Labs dropped around 3%, while AST SpaceMobile and Intuitive Machines declined by about 7% and 3%, respectively.
Retail investors had been aggressively buying SpaceX shares during the previous three trading sessions, purchasing more than $300 million worth of stock. However, buying activity slowed significantly on Thursday, with net purchases totaling only about $9.1 million by mid-afternoon, according to Vanda Research.
Analysts have previously warned that SpaceX stock could experience sharp price swings because only a limited number of shares are publicly available, while the company’s valuation remains extremely high.
SpaceX’s market value surged past $2 trillion after its blockbuster Nasdaq debut last week. The stock soared during its first two days of trading before investors began questioning whether the company’s premium valuation is justified, especially as it invests heavily in artificial intelligence (AI).
Adding to its AI ambitions, SpaceX announced this week that it plans to acquire Anysphere, the company behind the popular AI coding assistant Cursor, in a stock deal valued at $60 billion. The move is expected to strengthen SpaceX’s position in the growing market for enterprise AI tools.
The company is also reportedly preparing a bond offering worth at least $20 billion to help fund its ambitious AI expansion plans.
While the recent decline has cooled some of the IPO excitement, investors remain focused on whether SpaceX can successfully balance rapid growth, AI investments, and long-term profitability.
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