SpaceX share price drops below stock market debut — SkimNews
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- SpaceX shares dropped to $132.62 on Wednesday, falling below the $135 IPO price set in June and putting the stock down 41% from its post-float peak
- SpaceX lost more than 2% in a single session while the broader Nasdaq fell just 0.2%, per the article
- The June IPO briefly valued SpaceX above Amazon and Microsoft and made Elon Musk the world's first trillionaire
- xAI (since renamed SpaceXAI) was acquired by SpaceX earlier this year, marking its first AI-focused business and giving it data center capacity it now leases to other tech companies
- Starlink's decision to cut prices in the Memphis, Tennessee area — amid local concerns over a massive data center project — knocked 8% off SpaceX's share price
- Interactive Brokers chief market analyst Steve Sosnick told Reuters there has been "nothing to remind people of some of the catalysts for why they bought SpaceX"
- SpaceX's first public earnings report is expected in August, the next major test for the stock
Why it matters: IPO investors who piled in at $135 are now sitting on paper losses, and the 8% single-event drop triggered by Starlink's Memphis price cuts shows how thin the buying support is. With analysts citing a lack of fresh catalysts, SpaceX's first public earnings report in August will determine whether the 41% peak-to-trough slide extends or steadies.
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