SpaceX has fallen below its IPO price: market capitalization lost $2 trillion
SpaceX (SPCX) shares have broken through the $150 level, falling below the initial public offering (IPO) price. The company's market capitalization has dropped below the $2 trillion mark for the first time since its stock market debut. This sharp decline follows a short-term rally during which quotes reached $225.64 last week.
Sharp Decline After IPO
Recall that the SpaceX IPO started at a price of $135 per share, and on the first day of trading, June 12, the shares rose to $150. The company's market capitalization at that time was about $75 billion, making it the largest debut in Nasdaq history. However, already on June 16, after an intraday high of $225.64, a steady decline began. By Monday, the market capitalization was still holding just above $2.22 trillion, but then the sell-off accelerated.
Reasons for the Collapse: Bonds and Fundamental Risks
The trigger for the sell-off was the company's placement of its first bond issue. Under the terms, the senior bonds are expected to raise at least $20 billion. SpaceX will use the proceeds to repay a short-term loan and to develop projects in the AI and data center sectors. Notably, the company holds approximately $100.8 billion in cash, making the debt issuance a controversial move. This signals possible liquidity issues or aggressive scaling plans.
As a result, all investors who bought shares after the IPO are currently at a loss. SpaceX remains a subject of debate: is the company truly worth trillions, or is it a bubble? Susquehanna analysts assigned a neutral rating with a target price of $170, noting high growth rates but also an inflated valuation.
Five Related Assets Under Pressure
The sell-off has also affected other public space companies. Rocket Lab, the closest competitor in launches, fell by 8%, despite being included in the Nasdaq-100 index. AST SpaceMobile and Intuitive Machines came under the most pressure: their shares lost about a quarter and a third of their value, respectively. T-Mobile, a partner of Starlink in the T-Satellite project, remained almost unchanged in price, acting as a defensive asset.
Alphabet, which owns about 6% of SpaceX, also declined by 5%, but this was due to the departure of key AI specialists, not shifts in the space sector.
What's Next?
In the coming sessions, it will become clear whether the $2 trillion level holds as support or if the market will fall further. The bond sale is testing investor sentiment: the decline from the highs has already exceeded 30%. Experts advise waiting for a more favorable entry point, citing risks of delays with Starship, competition in Starlink, and uncertainty over AI revenues.
My view: The sharp drop in SPCX is not just a correction, but a reassessment of fundamental risks. $2 trillion is a psychological level, and breaking it could trigger further sell-offs, especially if investors start shifting into more defensive assets. Keep an eye on the dynamics of related stocks—they will serve as an indicator of sentiment across the entire sector.