SpaceX Stock Falls Below IPO Price
SpaceX shares dropped below their initial public offering price for the first time on Wednesday, trading down 2.2% to $133.02 at 12:35 ET. The $135 per‑share IPO price, set during last month’s $86 billion offering, was breached as the post‑listing rally lost momentum.
The price slide comes after an initial surge that saw the stock jump nearly 50% in its first three trading days, only to surrender most of those gains in the weeks that followed. The company recently disclosed a $4.9 billion net loss for the prior fiscal year, heightening investor concerns about its path to profitability.
Selling pressure may intensify because the first lock‑up restrictions on insider and early‑investor share sales are slated to expire after SpaceX releases its first quarterly results as a public company in the coming weeks.
Broader market headwinds are also weighing on the stock, including uncertainty over the Federal Reserve’s interest‑rate trajectory and growing doubts about the durability of rallies in artificial‑intelligence‑linked equities, especially semiconductor firms.
The initial strength of SpaceX’s share price was partly driven by demand from passive investment funds after the company was rapidly added to major equity benchmarks. It joined the Russell 1000 Index weeks after its listing and was later incorporated into the Nasdaq 100 following a rule change that accelerated eligibility for newly public large‑cap companies.
Despite the recent decline, Wall Street remains optimistic; Raymond James has set a bullish price target of $800 per share, one of the most aggressive forecasts for the stock.
Key market data: NDX –0.28%, RUI +0.37%, SPCX –0.60%.