SpaceX shares fall below $135 IPO price
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- SpaceX shares fell to $132.62 on Wednesday, dropping below the $135 initial listing price from its June IPO.
- The stock is down 41% from its post-float peak, which briefly valued SpaceX above Amazon and Microsoft.
- Starlink's decision to cut prices in Memphis, Tennessee amid local data center concerns triggered an 8% SpaceX share drop.
- SpaceX's June IPO made Elon Musk the world's first trillionaire, according to the article.
- SpaceX acquired xAI (renamed SpaceXAI), marking its first foray into AI, and now leases data center capacity to other tech companies.
- Steve Sosnick, chief market analyst at Interactive Brokers, told Reuters there hasn't been anything recently "to remind people of some of the catalysts for why they bought SpaceX."
- SpaceX is expected to release its first public earnings report in August.
Why it matters: Investors who bought near the $135 IPO price now face paper losses at $132.62, and with Sosnick noting a lack of fresh catalysts and Starlink's Memphis price cuts already costing the stock 8%, SpaceX's expected August earnings report becomes the next opportunity to justify its valuation.
