SpaceX shares dip below IPO price for first time, hitting $132.28
SpaceX shares fell below their IPO price of $135 for the first time on Wednesday, dipping to $132.28 before closing at $135.27, according to Reuters. The drop came just over a month after the company’s record-breaking IPO, which had briefly pushed its market valuation above $2.6 trillion, surpassing Microsoft and Amazon. Investors who bought at the IPO price now sit on paper losses, reversing the euphoria surrounding the launch. Analysts attribute the decline to profit‑taking, valuation concerns, debt‑funded AI spending, and fears of Federal Reserve rate hikes weighing on tech stocks. SpaceX also raised $25 billion in the bond market last month to fund AI infrastructure, and its addition to the Nasdaq 100 index did not stem the retreat, with the stock down roughly 13% since inclusion. Earlier reports noted Elon Musk’s fortune fell by about $350 billion in a week, reducing his net worth to roughly $1.1 trillion from $1.4 trillion on June 16.
Will you hold your SpaceX shares through this volatility, or consider reallocating to other tech opportunities given the current valuation concerns?