SpaceX investors have shifted from celebration to concern as the company's shares have dipped since its historic initial public offering (IPO) on June 12, 2026. Initially priced at $135, shares surged to a high of $176 on the first day, making it the largest IPO of all time. However, one month later, shares are trading around $145, reflecting an 18% drop from its debut.
Initial Surge and Subsequent Decline
On its first trading day, SpaceX saw an investor frenzy, with shares closing at $160.95. The excitement was fueled by the company's new focus on artificial intelligence (AI), particularly after acquiring Musk's AI startup xAI, now known as SpaceXAI. According to Keith Snyder, an analyst at CFRA, “With Elon Musk, any company he touches gets people excited.”
However, the reality of SpaceX's revenue model is coming into sharper focus, leading to a decline in share prices. After announcing price cuts in the Memphis area for its Starlink service, shares fell by 8% in one day. The company’s addition to the Nasdaq100 index on July 7 coincided with a broader downturn in tech stocks, with SpaceX shares dropping by 4.4%.
Investor Sentiment and Market Performance
The drop in share price has left many retail investors concerned. Snyder noted, “If you bought around the first tick you’re definitely underwater.” The volatility has drawn comparisons to meme stocks like GameStop, where online chatter drives price increases. Analysts predict that SpaceX's stock could dip further to around $115, valuing the company at $1.5 trillion.
- Initial share price: $135
- First-day high: $176
- Current share price: $145
- Projected dip: $115
- Market value at dip: $1.5 trillion
Future Outlook and Earnings Report
Despite the recent downturn, Elon Musk remains optimistic about SpaceX's future. He has projected that the company will generate $1 trillion in revenue by 2030. Following the IPO, SpaceX used its stock's surge to acquire Cursor, an AI startup, in an all-stock deal valued at $60 billion. This strategic move has showcased Musk's market sophistication.
Financial analysts from Morgan Stanley have initiated coverage with a target share price of $300, suggesting a potential recovery. As anticipation builds for SpaceX's first public earnings report, expected in early August, investors are keen to see if the company can deliver on its ambitious projections.
🤖 This article was rewritten by Feed and Figures' editorial AI from a report originally published by BBC Business. Facts and quotes are preserved from the original; the rewrite focuses on clarity and structure. For the unedited original, see the source link below.
