SpaceX stock falls to $113.37 after hitting $225.64 high, with analysts warning of potential additional 50% decline.
SpaceX shares have dropped nearly 50% from their June 16 peak of $225.64 to $113.37, erasing initial IPO enthusiasm. The company raised $85.7 billion in its June 12 debut, briefly valuing it at nearly $3 trillion, but passive fund inflows failed to sustain momentum.
Historical data shows technology IPOs average a 55% first-year drawdown, suggesting SpaceX’s decline may not yet be over. The stock’s inclusion in the Nasdaq-100 and Russell indexes initially drove demand, but fundamentals are now under scrutiny ahead of its Aug. 4 earnings report.
Analysts caution that valuations could contract further before stabilizing, as early post-IPO hype fades and market conditions weigh on high-growth stocks.