NASDAQ: SPCX falls 4% after dipping below its $125 IPO price amid AI sector sell-off and operational setbacks.
SpaceX (NASDAQ: SPCX) shares dropped as much as 4% Friday, briefly trading below their $125 IPO price before paring losses. The decline erases a 67% post-IPO rally, leaving the stock near its debut level after two days of trading.
The pullback follows a broader sell-off in AI-related stocks and operational challenges, including a delayed Starship test flight and new competition from China’s reusable rocket program. Analysts had previously forecast 152% annual earnings growth through 2029.
Despite the retreat, some investors view the $125 price as a long-term entry point, citing projected P/E compression from 192x in 2027 to 22.5x by 2029.