SpaceX Stock Stabilizes After $600 Billion Selloff
Shares of Elon Musk’s SpaceX showed signs of recovery on Tuesday morning following a punishing three-day selloff that erased more than $600 billion from the company’s market value. As of 10:45 a.m. Eastern Time, the stock was back in positive territory, climbing 1.6 percent to approximately $157 per share.
Volatility Continues After Historic IPO
The rebound came after a turbulent session in which shares initially fell 1.9 percent to $151.60 before dropping as much as 5 percent to a low of $146.88. That intraday low dipped below $150 — the opening price on the day of the company’s stock market debut. The sharp swings underscore the ongoing volatility surrounding one of the most closely watched IPOs in recent memory.
SpaceX’s record-breaking initial public offering sparked a trading frenzy during its first week as a publicly traded company. The rocket and artificial intelligence company briefly surpassed both Microsoft and Amazon in market valuation before retreating. Most recently, SpaceX carried a market capitalization of $1.99 trillion.
Analysts Urge Caution
Nic Puckrin, cross-asset analyst and founder of Coin Bureau, advised investors to temper expectations. “I would be cautious about viewing this as a second chance to buy. The decline looks dramatic in its magnitude, but these swings are not unusual for a stock with such a small public float,” Puckrin said.
Despite the recent turbulence, the company’s shares remain more than 10 percent above their IPO price of $135, suggesting that early investors have still seen meaningful gains from the offering.
Large IPOs Often Face Early Turbulence
SpaceX’s rocky start is far from unusual for major initial public offerings. A Reuters analysis of the 50 highest-valued IPOs over the past five years found that roughly three-quarters of the time, investors would have fared better simply buying an S&P 500 index fund rather than participating in a large IPO at launch.
Adding to the market dynamics, SpaceX also announced a bond offering earlier this week, which may be influencing investor sentiment as the company continues to navigate its new life as a publicly traded entity.
