Shares of SpaceX fell more than 3% on Thursday, closing at $131.11, marking the first time the stock has traded below its initial public offering (IPO) price of $135 since its debut in June. The company, which went public on June 12, had a strong initial performance, with shares rising 19% on the first day to a peak of $193. However, the stock has largely declined since then, except for one day of gains.
Stock Performance
Despite being included in the Nasdaq 100 and Russell 1000 indexes, which typically boost stock performance, SpaceX's shares have fallen consistently. The company recently issued $25 billion in additional debt shortly after raising $75 billion from its IPO, contributing to negative sentiment among investors. Short sellers have reportedly increased their positions, with bets against the stock nearing $4 billion. Investors who purchased shares at the opening price of $150 have seen their investments decrease by over 11%.
Market Capitalization
SpaceX's market value has declined by more than $1.2 trillion from its peak on June 16. The company's valuation has dropped by nearly $250 billion from its debut price. Founder Elon Musk's net worth, primarily tied to his SpaceX stake, has also decreased from a peak of approximately $1.32 trillion to around $850 billion, according to the Bloomberg Billionaires Index. Musk remains optimistic about the company's future, stating that
SpaceX might be able to reach approximately $1T revenue in 2030.
The decline in SpaceX shares could negatively affect investor sentiment in the technology and space sectors, particularly impacting related stocks and indices. The additional debt issuance may raise concerns about the company's financial stability, potentially leading to further volatility in its stock price. Investors will watch for the upcoming launch of SpaceX's flagship Starship rocket, scheduled for later Thursday, as a potential catalyst for market reaction.