SpaceX shares tumbled to an all-time low of $132.75 on Wednesday, breaching the company's initial public offering price of $135 for the first time. The stock, which debuted at $150 on June 12, has now fallen over 30% from its peak of $225.64 reached just days after listing. Midday trading saw shares down nearly 3%, extending a slide that has left the stock roughly 12% lower year to date.
Wall Street remains bullish despite market pessimism
Despite the sharp decline, most analysts maintain a positive outlook on SpaceX. According to Yahoo Finance data, 27 of 31 Wall Street analysts rate the stock a Buy or Strong Buy, with an average price target of $242. Needham recently reaffirmed its Buy rating while raising its target from $200 to $250. The disconnect between analyst valuations and market pricing highlights investor uncertainty about near-term execution.
SpaceX's business spans rocket launches, satellite broadband, satellite-to-phone services, and data centers, with growing AI-related products. Bulls argue this diversified portfolio positions the company for long-term growth, even as the stock struggles to find a floor.
Starship test flight looms as key catalyst
A major near-term event is the 13th test flight of Starship, tentatively scheduled for Thursday night. This will be the second launch of the Version 3 design, a larger and more powerful iteration that debuted less than two months ago. The previous test in May saw the Super Heavy booster suffer heat damage during separation and fail to reignite its engines, resulting in its loss.
SpaceX has been refining Starship since 2023, and the vehicle is critical to the company's heavy-lift launch, satellite deployment, and eventual lunar and Mars missions. However, analysts like Evercore's Kutgun Maral caution that Starship has yet to demonstrate scalability, a concern as the first operational payload launch approaches in the second half of this year. Earnings, expected in mid-August, could provide further direction for the stock.