SpaceX (NASDAQ:SPCX) continued to recover in premarket trading on Wednesday after rebounding from losses that briefly pushed the stock below its post-IPO opening price.
Shares closed Tuesday up 0.9% at $156.06 after falling as low as $147.11 during the session, below the stock’s June 12 opening price of $150
The shares advanced a further 1.2% in premarket trading by 04:43 ET (08:43 GMT). Although the stock remains well above its IPO price of $135, investors who purchased shares after the public listing have seen much of the early post-IPO gains disappear. SpaceX shares reached a high of $225.64 shortly after the company’s market debut.
Recent Selloff Raises Valuation Questions The recovery follows a sharp 16.4% decline on Monday after KeyBanc adopted a more cautious view on the stock, arguing that the company’s valuation had become stretched following its rapid post-listing rally. The weakness came amid a broader technology selloff, with the Nasdaq 100 falling around 2.9% and the S&P 500 declining 1.6% as semiconductor stocks came under pressure and investors reassessed enthusiasm surrounding artificial intelligence-related investments. Monday’s drop erased approximately $400 billion in market value and intensified debate over whether SpaceX’s long-term growth prospects can support its current valuation.