- SpaceX stock sank for a second consecutive day, closing at a market cap of $2.43 trillion, slipping below Amazon, which ended the day at $2.63 trillion.
- Shares of SpaceX dropped 3.57% on Thursday, as the stock's recent rally cooled following a record-breaking IPO last week.
- Options traders expect SpaceX's stock to swing 10% in either direction next week, with potential prices ranging from $166 to $204.
- The post-IPO frenzy that briefly placed SpaceX among the world's top five most valuable companies appears to be fizzling out, with shares down more than 6% on Thursday.
- After reaching a high of $225 earlier in the week, SpaceX shares have now declined by 20% since then.
- SpaceX's IPO last week was historic, with shares initially offered at a set price of $135, and they surged 37% after debuting.
- The acquisition of AI coding startup Cursor for $60 billion has raised concerns among analysts about potential dilution of SpaceX shares.
- Morningstar analysts have warned that SpaceX is significantly overvalued and that its market value is tied to technologies that are novel and untested.
- A pair of major index providers, CRSP and S&P Dow Jones Indices, could add SpaceX to some of their indexes starting next week.
- The days leading up to index inclusion tend to boost stock prices as funds tracking those indexes buy shares.
SpaceX's stock has experienced a significant decline, falling over 6% on Thursday, following a record-breaking IPO last week. The stock's market cap has now slipped to $2.37 trillion, placing it below Amazon's $2.63 trillion.12
After a surge of 15% earlier in the week, the stock has seen a total drop of 20% since reaching a high of $225 on Tuesday. This decline has erased approximately $620 billion from SpaceX's market value, which had briefly positioned it as the world's fourth-largest company.7
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Analysts attribute the selloff to concerns over a $60 billion all-stock acquisition of AI coding startup Cursor, which has raised fears of dilution among investors. Morningstar analysts have lowered their fair value estimate for SpaceX to $62 from $63, citing this dilution.9
Despite the recent downturn, retail investors had aggressively purchased SpaceX shares, totaling $369.8 million in the first three sessions post-IPO, significantly outpacing investments in Nvidia. However, trading activity has since cooled, with only $9.1 million in net purchases noted on Thursday.
Looking ahead, options pricing indicates that SpaceX's stock could swing as much as 10% in either direction next week, with potential highs of $204 and lows of $166. The stock may also be added to major indexes, which typically boosts prices as funds buy shares in anticipation.45
“Given the magnitude of the IPO and the strong initial performance, some degree of profit-taking is not surprising,” said IPOX Schuster analyst Kat Liu.
Elon Musk's net worth has also taken a hit, dropping by $67.8 billion to approximately $1.2 trillion.
“SpaceX shares have declined for two consecutive days, dropping below Amazon's market cap. The post-IPO excitement appears to be fading, with traders anticipating notable stock movement in the coming week.”
CNBC
Forbes