Space X once fell by more than 20% from its issuance price due to a double attack of valuation bubble and pressure to lift the ban
[SpaceX once fell more than 20% from its issue price due to a double attack of valuation bubble and pressure to lift the ban] As investors' risk aversion increased and they were selling high-risk technology stocks, SpaceX hit a new low during the session, and its stock price was once more than 20% lower than the IPO issue price.
As investors' risk aversion increased and they were selling high-risk technology stocks, SpaceX reached a new intraday low, with its stock price once more than 20% lower than the IPO price. Specific market conditions show that SpaceX once fell by more than 5.7% after opening on Tuesday, with the lowest price at US$107.01, 20.73% lower than the issue price of US$135; however, it rebounded later, and as of press time, the stock rose by more than 2% to US$116. On the third day of listing (June 16), SpaceX's stock price once reached $225.64. This round of decline has caused the company's total market value to evaporate by US$1.2 trillion from its peak, making it one of the largest market value reduction events in history. Recently, the geopolitical environment has been turbulent, coupled with market concerns that huge expenditures in the artificial intelligence (AI) ecosystem are driving up demand and valuations. The stock prices of many large technology companies have been under pressure, and SpaceX’s biggest future market opportunity also comes from the AI field. Eric Sterner, chief investment officer at Apollon Wealth Management, said it's not unusual for newly listed stocks to see wild swings. But he pointed out that "investor sentiment has run far ahead of SpaceX fundamentals, and the company's valuation has been pushed too high." At the same time, SpaceX investors are also assessing the possible impact of the phased lifting of the ban in the coming months. According to this special lock-up period plan, up to 900 million shares will enter the market for trading from August 6. In the past month, SpaceX's high valuation and potential upcoming selling pressure have attracted a large number of short-selling investors. About 30% of currently tradable stocks are shorted, according to data compiled by S3 Partners. Data shows that these bearish investors have now made nearly $8 billion in paper profits, as SpaceX’s stock price has fallen by about 40% from its closing high on June 16. Joe Gilbert, portfolio manager at Integrity Asset Management, said SpaceX's share price fluctuations were not an isolated incident. "Investors are moving out of large-cap tech and high-momentum stocks, and SpaceX falls into that category." Gilbert said: "We cannot yet conclude that the SpaceX IPO marks the peak of large technology stocks, but at present, it seems to have become a strong signal." Even though SpaceX completed a largely successful Starship test flight on Friday, selling pressure on the stock price has intensified. SpaceX deployed an upgraded version of the satellite for the Starlink communication network during the test, and the rocket basically returned to Earth safely. Starship is Musk's core project to expand the Starlink network, carry out manned moon landing and deep space exploration missions, and deploy data centers to space in the future. However, the development process of the project has been full of uncertainty, experiencing multiple explosion accidents, technical failures and delays. With more SpaceX shares set to hit the public market, investors and analysts are beginning to discuss how far the stock price could fall, with some bearish investors eyeing the key $100 per share level. Morgan Stanley analyst Adam Jonas said in a report on Friday that if the stock price falls to this level, it means that the market's valuation of SpaceX's artificial intelligence business will be close to zero, or even negative.