If you didn’t buy SpaceX shares in the first minutes of trading after the IPO, then you’re probably under water.
Shares are having a rough day today as the hype machine dies down
It’s lower by 10.5% to $165.64 and the decline comes after the company filed to sell senior unsecured notes for at least $20 billion. The shares — like the IPO sale — is going to be used to pay back a bridge loan and for ‘general corporate purposes’, which is boilerplate language. The thing is, the company hasn’t generated any growth capital in all the fundraising.
That doesn’t point to a company that can aggressively fund growth when its two main business lines — rockets and data centers — are massively capital intensive. The company did disclose cash and cash equivalents of $100.8 billion today (due in large part from the $75 billion IPO). At least $20 billion of that will go to the bridge loan.