Space X’s stock price fell below the IPO price for the first time, and the market enthusiasm began to subside
[SpaceX’s stock price fell below the IPO price for the first time, and the market enthusiasm began to fade] On Wednesday, Eastern Time, SpaceX’s stock price fell below the IPO price for the first time. As the market’s pursuit of the reusable rocket manufacturer gradually faded, the company’s stock price’s previous strong upward momentum was ebbing.
SpaceX's stock price fell below its IPO price for the first time on Wednesday Eastern Time. As the market's pursuit of the reusable rocket manufacturer gradually faded, the company's previous strong upward momentum was ebbing. Specifically, SpaceX's stock price fell for the fourth consecutive trading day, falling to $133 at one point during the session, not only below the issue price of $135, but also further below last month's high. At that time, the market value of SpaceX once exceeded that of Silicon Valley giants such as Microsoft and Amazon. The latter two companies not only had a longer history of public market transactions, but also had stronger financial performance. If this decline continues, investors who bought SpaceX shares at the IPO price will suffer paper losses for the first time. It's another reminder that even for a company with a grand vision and the influence of Musk's personal influence, Wall Street's enthusiasm can quickly cool. Last month, SpaceX was valued at more than $2.6 trillion, but as of Wednesday afternoon, the company's market value had fallen back to about $1.75 trillion. "I think the core issue that the market is concerned about is that a lot of people who hold this stock, some or a significant number of them may want to cash out, which puts a lot of pressure on the stock price," said Justus Parmar, CEO of Fortuna Investments. He added: "This may only be starting to emerge and we may see more similar pressures over the next year." The sharp decline in SpaceX's stock price partly reflects investors' concerns about the company's reliance on debt financing to promote investment in AI infrastructure. It is also affected by market concerns that the Federal Reserve may raise interest rates, which will impact highly valued technology stocks. Last month, SpaceX turned to the bond market to raise $25 billion, becoming another recent technology giant to issue bonds to raise funds for expensive technology infrastructure construction. However, whether such large investments will generate sufficient returns in the future is becoming a hotly debated topic on Wall Street. Daniela Hathorn, senior market analyst at Capital.com, noted: "The pullback appears to be the result of a combination of factors, including investor profit-taking, a reassessment of valuations, and the unwinding of extremely bullish market positions following one of the most high-profile listings in recent years." It's not uncommon for stocks to fall below their offering price, especially during periods of overall market stress. Still, the decline may embolden critics who say SpaceX is overvalued, given that the company lost $4.9 billion last year and many of its grand plans have yet to be proven. "The market hasn't seen many new catalysts recently to remind investors why they bought SpaceX stock in the first place." Steve Sosnick, chief market analyst at Interactive Brokers, said. "The stock price falling a few dollars below the IPO price is not a disaster in itself, but SpaceX is highly concerned and has an important impact on investor psychology." In addition, the inclusion of SpaceX into the Nasdaq 100 Index, which has a high proportion of technology stocks, has failed to reverse the downward trend in stock prices. At present, investors' focus will turn to the company's first financial report after listing. Analysts expect SpaceX to report results in the first week of August. After the financial report is released, the first phase of the IPO lock-up period will expire, and eligible employees and some early shareholders will be able to start selling part of their holdings. Analysts believe that this incident may further put pressure on the stock price. Investors are also paying close attention to the company's 13th Starship test flight. The success of the Starship project is crucial to reducing space launch costs and achieving many of the company's long-term strategic goals, including plans to build orbital data centers and execute lunar missions. (