SpaceX (SPCX.O) shares fell more than 4% in pre-market trading on Monday, extending losses for a third consecutive session. After dropping over 8% last Wednesday and Thursday, the stock still trades 37% above its IPO price of $135, giving the company a market capitalization of $2.4 trillion as of Thursday's close.
KeyBanc Initiates Coverage with Neutral Rating
KeyBanc Capital Markets has initiated coverage on SpaceX with a neutral rating. The firm acknowledges the company's strong long-term growth potential but believes the risk-reward profile is balanced in the near term. The stock's recent pullback comes after a significant rally following its IPO.
Market Context and Outlook
SpaceX's valuation remains elevated despite the recent decline. The company's long-term prospects are supported by its dominant position in the space launch market and ambitious projects like Starship and Starlink. However, short-term risks include potential regulatory hurdles and competition. Investors are weighing these factors as the stock consolidates after its post-IPO surge.