Key Takeaways:
- SPCX fell 3.5% in premarket to about $149, nearing its $135 IPO price
- The stock has lost roughly $600 billion in market value from its peak
- A reported $20 billion bond sale added to selling pressure Monday
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SpaceX drops 3.5% to $149 as post-IPO rally unwinds
SpaceX stock slid 3.5% in premarket trading to about $149, extending a reversal that has erased roughly $600 billion from its peak market value since the company's June 12 direct listing.
"The post-IPO price discovery process is playing out in real time, and the volatility is consistent with a stock that debuted at a triple-digit price-to-sales multiple," said Matthew Tuttle, chief executive officer at Tuttle Capital Management.
The stock closed at $154.60 on Monday after touching an intraday low of $151.20, according to exchange data. That followed a peak of $225.64 on June 16 — the third trading session — when the stock had surged 67% above its $135 IPO price. Monday's session alone wiped about $400 billion off the company's market capitalization. Reports that SpaceX was seeking to raise $20 billion in a bond sale, first reported by Bloomberg, added to the selling pressure.
The decline brings SPCX within 10% of its $135 IPO price, a level that could act as a psychological floor. With insider lockups set to expire in 15 stages over more than a year, the stock faces persistent downward pressure from an expanding float. For long-term investors, the question is whether SpaceX's addressable market — which the company estimates at more than $28 trillion, nearly equal to U.S. gross domestic product — justifies a valuation that still exceeds most industrial conglomerates.
The broader market added headwinds. The U.S. 10-year Treasury yield edged up 3 basis points to 4.38%, while the dollar index held near 105.2, creating a challenging backdrop for high-growth, unprofitable companies. Among the 11 S&P 500 sectors, technology and consumer discretionary names led declines, with the information technology sector falling 0.8%.
SpaceX's post-IPO trajectory mirrors patterns seen in other high-profile listings where initial euphoria gave way to reality. The company's valuation at its peak implied it had already achieved milestones tied to Mars colonization and orbital data centers — goals that remain years from realization. The stock now trades at roughly 70 times trailing revenue, still elevated by industrial standards but down from the 100 times multiple at its debut.
This article is for informational purposes only and does not constitute investment advice.
