Shares fell as low as $132.28, dipping below the $135 listing price, amid profit-taking and debt-funded AI spending concerns.
SpaceX shares briefly traded below their $135 IPO price on Wednesday, hitting a low of $132.28 before closing at $135.27, down 0.6% for the day. The decline marks a 13% drop since the stock joined the Nasdaq 100, erasing gains from its post-listing rally and pushing its valuation below $1.78 trillion from a peak above $2.6 trillion.
Analysts attribute the pullback to profit-taking, unwinding of bullish positions, and broader concerns over the company’s $25 billion debt-funded AI spending. With the green shoe option exhausted, underwriters have limited capacity to stabilize the stock ahead of its first earnings report in early August and the upcoming lock-up expiry.
Wall Street remains divided on the stock’s long-term outlook, with price targets ranging from $63 to $300 by 2027. The stock’s volatility is expected to persist as investors await key catalysts in the coming weeks.