The daily line is negative for six consecutive days! Space X’s market value has evaporated by more than US$1 trillion, and all institutional and retail investors have been trapped
The company's stock price fell by more than 40% from last month's high. After the Starship launch mission was announced to be postponed, the stock price of Musk's space exploration company SpaceX plummeted 5.43% on Friday to US$123.99, falling for the sixth consecutive trading day and further falling below the IPO issue price of US$135. As the stock price fell to a new low since its listing, all institutional and individual investors involved were trapped. At the same time, SpaceX has also become an important factor dragging down the Nasdaq 100 Index recently. After a strong initial performance in the IPO, the stock began to fluctuate downwards, closing at $131.11 on Thursday, the first time since its listing that the closing price fell below the IPO issue price of $135. Compared with the intraday historical high of $225.64, the stock has retraced more than 40%, and its market value has evaporated by more than $1 trillion. This 13th Starship flight plan aims to solve the technical problems exposed in the previous round of test flights, and at the same time carry and deploy 20 third-generation Starlink V3 satellites. The U.S. Federal Aviation Administration (FAA) approved the launch on Monday after regulators completed an investigation into the accident on Starship's 12th test flight. Although the test flight took off successfully, the Super Heavy booster eventually crashed into the Gulf of Mexico. This launch is also SpaceX's first starship test flight after its listing. It has attracted much attention from the outside world. The launch window was originally scheduled to open at 18:45 EST on Thursday, but the final launch plan was canceled midway. After the live broadcast announced the mission interruption, CEO Elon Musk confirmed that the test flight was postponed. Musk posted on the social platform: "Multiple engines failed to ignite, and the system triggered an automatic launch abort. The propellant is currently being unloaded, and it is expected to try to launch again within a few days." He later added: "To ensure a smooth flight, we will remove and replace the two Raptor engines. The most likely launch time is early next week." Although short-term sentiment is under pressure, some analysts believe that if the launch is successful next week, the flight interval will be significantly shortened, showing that the speed of technology iteration is still accelerating. Investors are paying close attention to stock price trends as the company is about to announce its first quarterly earnings report and more restricted shares are lifted. On the other hand, global technology stock indexes continue to be under pressure, and market concerns about the overvaluation of technology stocks remain lingering. Matthew Meili, chief market strategist at Miller Tabak, said that once the stock price falls below the issue price, it will have a major blow to market psychology. "The market will form a unified argument: the rise of this stock is purely based on thematic hype and speculative bubbles, with no fundamental support at all." As of Friday's close, SpaceX had fallen nearly 23% after being included in the Nasdaq 100 Index. When SpaceX's stock price hit its peak, the Nasdaq 100 index was less than 1% away from its all-time high; now the index has fallen 6% from that high. This IPO will allocate about 20% shares to retail investors. Once the stock price breaks, individual investors will bear a huge impact. China Business News previously reported that Wanda research data showed that on the first day of listing of SpaceX shares, South Korean overseas retail investors known as "seohak ants" snapped up nearly US$800 million in SpaceX shares. A large number of retail investors are also crazy about placing various call options on SpaceX. Now they are either deeply locked in or forced to stop their losses. The Wall Street investment banks (Morgan Stanley, Goldman Sachs) that led the underwriting were not in an ideal situation either. After the stock price rose sharply in the initial stage of listing, the investment banks issued an additional US$11 billion in SpaceX equity. It is worth mentioning that SpaceX has also rewritten Wall Street’s IPO operating rules. Although it is temporarily unable to be included in the S&P 500 Index, it has been quickly included in the Nasdaq 100 Index in accordance with the new Nasdaq regulations. Passive funds and ETFs that track the index will passively allocate the stock and bring buying support to the stock price. Don Kaufman, co-founder of the online trading platform TheoTrade and former head of Charles Schwab retail brokerage, analyzed: "Investors always feel that they have missed out on the new stock market, but from another perspective, they can now deploy SpaceX chips at low prices as needed. I am also surprised that the investment bank leading this IPO did not have a larger sell-off."
Statistics from SpotGamma, a derivatives data agency, show that the total transaction volume of SpaceX options on Friday was US$350 million, of which US$290 million corresponded to put options; among the top ten contracts by trading volume, 7 were put options. However, if we dismantle the data in depth, we can see that Investors betting on Musk’s space blueprint aren’t throwing in the towel so easily. Data from SpotGamma and Chicago Board Options Exchange Cboe show that more than half of the put option premiums come from sellers (investors sell put options and bargain hunting arrangements); 9 of the top ten large-volume transactions are bullish arrangements. A team of analysts led by Bernstein Douglas Harnd issued a research report on Friday stating that Starlink is the core growth engine supporting SpaceX’s future growth, but it is also a major risk point. The agency predicts that by 2031, this 400-foot-tall giant rocket will be launched 3,543 times a year, about 90% of which will be used for the orbital data center project planned by Musk.
Statistics from SpotGamma, a derivatives data agency, show that the total transaction volume of SpaceX options on Friday was US$350 million, of which US$290 million corresponded to put options; among the top ten contracts by trading volume, 7 were put options. However, if we dismantle the data in depth, we can see that Investors betting on Musk’s space blueprint aren’t throwing in the towel so easily. Data from SpotGamma and Chicago Board Options Exchange Cboe show that more than half of the put option premiums come from sellers (investors sell put options and bargain hunting arrangements); 9 of the top ten large-volume transactions are bullish arrangements. A team of analysts led by Bernstein Douglas Harnd issued a research report on Friday stating that Starlink is the core growth engine supporting SpaceX’s future growth, but it is also a major risk point. The agency predicts that by 2031, this 400-foot-tall giant rocket will be launched 3,543 times a year, about 90% of which will be used for the orbital data center project planned by Musk.