SpaceX hits rock bottom: shares plummet below IPO price, market cap loses $2 trillion
The space technology market is undergoing a significant correction. SpaceX (SPCX) shares have fallen below the $150 mark for the first time since their historic stock market debut — the initial offering price. Following this, the company's market capitalization lost the psychologically important level of $2 trillion.
As a reminder, SPCX debuted on Nasdaq on June 12 at a price of $135, and on the first day of trading, shares soared to $150, securing SpaceX's status as the largest IPO in exchange history. An intraday high of $225.64 was recorded on June 16, but a rapid decline began shortly after. On Monday, the market capitalization still held slightly above $2.22 trillion, but the collapse accelerated after the company issued its first bond offering.
Reasons for the Decline: Debt and Uncertainty
SpaceX's decision to raise funds through a bond issuance of at least $20 billion triggered a sell-off. The proceeds are planned to be used to repay short-term loans, as well as to develop projects in AI and data centers. Notably, according to the latest data, the company has approximately $100.8 billion in cash on hand, which casts doubt on the urgency of such borrowing.
As a result, SPCX shares are now trading below the initial price of $150, and the market capitalization has fallen below the $2 trillion mark for the first time since the stock market debut. The sharp drop in quotes after the IPO has driven many investors who bought shares on the open market into losses or even zero.
Against this backdrop, related assets also came under pressure. Rocket Lab, the closest public competitor in launches, fell by 8%, despite being included in the Nasdaq-100 index. AST SpaceMobile and Intuitive Machines lost about a quarter and a third of their value, respectively. T-Mobile, a partner of Starlink in the T-Satellite project, remained virtually unchanged in price, confirming its status as a defensive asset in this sector.
Analysts at Susquehanna assigned SpaceX a neutral rating with a target price of $170, noting high growth rates but an inflated current valuation. The company expects explosive revenue growth by 2030, driven by launches, Starlink, and AI development. However, experts advise waiting for a more favorable entry point, pointing to risks from Starship delays, competition in Starlink, and uncertainty regarding AI revenues.
My view: The fall of SPCX below the IPO price is not just a correction, but a signal of market overheating and overestimated expectations. Investors should closely watch the $2 trillion level: if it fails to hold as support, the sell-off in the space sector could continue, dragging down even less volatile assets.