SpaceX shares closed below their initial public offering price for the first time on Thursday, extending a slide that has wiped out more than 40% of the stock's value from its all-time high. The stock, listed on Nasdaq under the ticker SPCX, fell 3.08% to end the session at $131.11. That's below the $135 IPO price set in June, and not far from the record low of $132.75 hit intraday the day before.
From IPO high to steep decline
The June IPO drew strong demand, and the stock quickly climbed to a peak before the downturn began. Since then, SpaceX has lost 42% of its value. The decline has been steady, with few signs of a floor. The close below the IPO price is a psychological milestone for investors who bought in at the offering or at even higher levels. The stock had never previously finished a trading day under $135.
What's driving the sell-off
Company-specific factors have weighed on the stock. While the official reasons for the drop are not detailed in the available data, the broader market environment for space-related equities has been tough. The company's next earnings report and any updates on its Starship development timeline could provide more clarity. Analysts are watching for news on launch contracts and government funding as potential catalysts.
Investors on edge
The decline has caught the attention of retail and institutional holders alike. Many who bought at the IPO are now underwater. The 42% drop from the peak is steep for a company that is still viewed as a leader in the commercial space sector. The next few trading sessions will be key. If the stock fails to hold above $130, it could test lower levels. The company has not issued any statements in response to the recent price action.
SpaceX's stock is now trading at levels not seen since its first days as a public company. The question is whether the sell-off is an overreaction or the start of a longer correction. The coming weeks will bring more data points, including quarterly results and guidance, that could determine the stock's next move.
