SpaceX's shares fell below the $135 IPO price on Wednesday afternoon, dropping to under $133 before recovering to hover around that level. The stock, which debuted on June 12 in a blockbuster IPO that raised nearly $86 billion, initially surged to over $200, briefly giving the company a valuation rivaling Amazon and Microsoft. However, shares have declined steadily since that peak, losing value almost every week.
Volatility and market sentiment
The wild swings in SpaceX's stock price are partly due to its small public float — only about 4% of total shares trade on the Nasdaq. That limited supply, combined with intense investor attention, has amplified price movements. The broader tech stock downturn over the past month has also weighed on SpaceX, with bonds issued after the IPO suffering as well. Some analysts see the decline as a sobering of expectations around CEO Elon Musk's ambitious vision for the company.
Implications for upcoming tech IPOs
SpaceX's stock performance is being closely watched as a bellwether for other high-profile tech companies planning to go public. Both Anthropic and OpenAI have filed confidentially for IPOs, and SpaceX's trading will influence how investors gauge the potential success of those offerings. A prolonged slump could dampen enthusiasm for the next wave of tech listings.
Starship test launch looms
SpaceX faces an early test of investor confidence on Thursday, when it plans to launch its Starship rocket for the first time since the IPO. This will be the first Starship flight since a booster failure in May. The company will not attempt to recover the booster or upper stage, instead simulating a landing in the Gulf of Mexico — meaning both parts will be destroyed regardless of the flight's outcome. The "fly, fail, fix" approach that has defined Starship's development could add to stock volatility if the launch encounters problems.