BUSINESS

New York: SpaceX shares drop below IPO price

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New York — SpaceX shares fell below their $135 initial public offering price for the first time on Wednesday, extending a four-day losing streak and marking a sharp reversal from last month’s rally. The stock traded as low as $133 during the session, down from last month’s peak when SpaceX briefly surpassed Microsoft and Amazon in market value. The company’s market capitalization, which exceeded $2.6 trillion at its height, had dropped to about $1.75 trillion by Wednesday afternoon, putting recent buyers at risk of their first paper losses and highlighting how quickly enthusiasm can fade even for closely watched tech names. New York — Analysts and investors attributed the pullback to a combination of profit-taking, concerns about elevated valuations, and mounting selling pressure from shareholders looking to cash out following one of the most anticipated IPOs in recent years. Market participants also pointed to unease over SpaceX’s $25 billion in recently issued bonds used to fund AI-related infrastructure, alongside broader worries that potential Federal Reserve interest-rate increases could weigh on high-valuation technology stocks. The slide, which comes despite the stock’s inclusion in the Nasdaq 100 index, has renewed scrutiny of a company that lost $4.9 billion last year and is still working to prove the commercial payoff from its Starship launch program and other long-term ambitions.

Prepared by Christopher Adams and reviewed by editorial team.

Timeline of Events

Last month SpaceX valuation tops $2.6 trillion
Last month Company raises $25 billion bond financing
Last month Market cap briefly exceeds Microsoft, Amazon
Earlier this week Stock begins four-day losing streak
Wednesday Shares fall intraday to about $133
Wednesday Price drops below $135 IPO level
Wednesday Market cap falls to $1.75 trillion
This year Investors scrutinize debt-funded AI investments

Why This Matters to You

SpaceX's stock dip may affect your investments if you hold shares. It's a reminder that even high-profile tech stocks can be volatile. Check your portfolio and consider if you're comfortable with the risk.

The Bottom Line

SpaceX's fall below its IPO price shows the market's changing mood. Investors are worried about high valuations and potential interest rate hikes. If you're invested in tech, stay informed about market trends. Worth forwarding if you know someone in the tech investment game.