SpaceX (SPCX) shares have fallen below the IPO price: market capitalization has lost the $2 trillion mark.
The space technology market is undergoing a dramatic correction. SpaceX (SPCX) shares have broken through the initial public offering (IPO) price of $150 for the first time since their historic Nasdaq debut, and the company's market capitalization has fallen below the psychologically important $2 trillion mark.
As a reminder, the IPO launched on June 12 at a price of $135 per share, and on the very first day of trading, the stock surged to $150. An intraday high was recorded on June 16 at $225.64, after which a prolonged decline began. On Monday, the market cap was still hovering just above $2.22 trillion, but the sell-off accelerated following news of the company's first bond issuance. Under the terms of the offering, the senior bonds are expected to raise at least $20 billion. The proceeds are planned to be used to repay a short-term loan and finance projects in AI and data centers.
Currently, SPCX is trading below the initial price of $150, and the market capitalization has fallen below $2 trillion for the first time. This means that all investors who bought shares after the market opened are at a loss. The decline from the highs has already exceeded 30%.
Five Related Assets Under Selling Pressure
SpaceX's stock market listing has diverted significant funds and attention away from smaller public space companies. Monday's sell-off affected them unevenly. Rocket Lab, the closest public competitor in launches, fell 8% despite being included in the Nasdaq-100 index. The company's order backlog reached $2.2 billion last quarter, but selling pressure proved stronger.
Shares of T-Mobile, Starlink's partner in the T-Satellite project, remained virtually unchanged — with a beta coefficient of around 0.3, they act more as a defensive asset. However, AST SpaceMobile and Intuitive Machines came under the greatest pressure. ASTS shares, a direct competitor in satellite communications for phones, have fallen by nearly a quarter over the past month. LUNR, which sends NASA landers on Falcon 9 rockets, has lost about a third of its value over the same period. Additional pressure on LUNR comes from a plan to raise $500 million through a share offering and an increase in short positions.
What's Next?
SpaceX remains a subject of fierce debate: is the company truly worth trillions, or is it a bubble? Susquehanna assigned SPCX a neutral rating with a target price of $170, noting high growth rates but an inflated valuation. Experts advise waiting for a more favorable entry point, pointing to risks from Starship delays, competition in Starlink, and uncertainty over AI-related revenues.
In the coming sessions, it will become clear whether the $2 trillion level holds as support or if the market will move even lower. The bond sale is testing investor sentiment, while other participants in the space sector will continue to take their cues from SPCX.
My opinion: The current correction is not a collapse of fundamentals, but a revaluation after the IPO euphoria. SpaceX possesses unique assets, but multiples at the $2+ trillion level require flawless execution of ambitious Starship and AI plans. The risk of further decline remains until there is clarity on cash flows from new projects.