- SpaceX’s stock has dropped 20% over two days, erasing much of the gains accumulated after its debut.
- The stock had jumped to an intraday high of over $225 on Tuesday, but things changed.
- SpaceX’s earnings report is due in late July.
Elon Musk's SpaceX had a blockbuster initial public offering (IPO) last week, shattering records for the biggest public issue in history. Days later, a sharp pullback has made almost all of the stock's post-IPO gains disappear.
Investors who bought SpaceX shares in the open market after the share was listed on Nasdaq are now just about breaking even after the stock's price fell over the last two days, CNBC reported.
On Tuesday, SpaceX's stock jumped from its $135 IPO price to an intraday high of over $225. But things have changed. Since then, the shares have fallen 20%, erasing much of the gains accumulated after the debut.
On Thursday, SpaceX's stock slid 3.6% to just below $184.98 per equity. The share's five-day volume-weighted average price ( VWAP) is $181.71. VWAP is frequently used by traders to gauge the positioning of investors. It measures the average price a stock has traded all through the day, weighted by trading volume.
The decline has narrowed profits for thousands of retail investors who gained access to the SpaceX IPO via brokerage platforms like Robinhood and Fidelity.
What Led To SpaceX's Stock Price Drop?
The two-day slide was triggered by the rocket maker's announcement on June 16 that it would acquire Anysphere, the firm behind AI coding tool Cursor. The $60 billion all-stock deal carries an approximate 3.4% dilution of SpaceX's IPO valuation.
The past two days have wiped off almost $620 billion in SpaceX's market value, dropping the valuation of the Musk-owned company from nearly $3 trillion to $2.37 trillion.
SpaceX, which briefly ranked fourth globally in market value, ahead of tech giants Amazon and Microsoft, has now slipped to seventh place.
The reversal has highlighted how sentiment-driven SpaceX's initial rally was, as per Be(in) Crypto. Retail investors put $369.8 million into SPCX over its first three sessions, over four times the money poured into Nvidia over the same period, as per data by Vanda Research. The pace slowed by Thursday, with net retail buying falling to $9.1 million by midafternoon.
With a lockup expiry in late July that may double the stock's free float, as well as a potential $20 billion bond sale linked to xAI financing, the supply-side pressure on SpaceX will grow.
Whether this fall marks the start of a longer post-IPO unwind will depend on SpaceX's earnings report, which is due in late July.
