Space X rebounded after falling 20% from its IPO price
Shares of SpaceX, Musk's rocket, satellite and artificial intelligence company, rebounded after falling about 20% since its record-breaking listing as investors avoided riskier technology stocks. SpaceX once fell 5.7% during the session, causing the company's market value to evaporate by more than 1.2 trillion US dollars from its high point on June 16, setting one of the largest market value shrinkage events in history. The stock closed higher on Tuesday at $116.49, down nearly 14% from its IPO price. In recent weeks, the geopolitical situation has continued to be turbulent, coupled with the market's growing concerns about the sustainability of the huge expenditures supporting the high demand and high valuations of the AI industry chain, putting pressure on the stock prices of many leading companies in the AI industry. With much of SpaceX's future growth prospects betting on artificial intelligence, the stock had fallen in 13 of the past 16 trading days as of Monday's close. Eric Sterner, chief investment officer of Apollon Wealth Management, said it is not unusual for stock prices to fluctuate significantly after an IPO. However, he believes that "investor sentiment has run far ahead of SpaceX's fundamentals, and its valuation has been overextended." At the same time, SpaceX investors are still assessing the possible impact of the phased lifting of the ban in the coming months. According to this special batch lifting mechanism, as many as 911.5 million shares will be available for market trading on August 6. Due to the high valuation of SpaceX and the market expectation that a large number of shares will be released from circulation in the future, a large number of short-selling investors have attracted a large number of investors in the past month. Data compiled by S3 Partners shows that about 30% of available shares are currently shorted. With the stock price down 42% from its closing high on June 16, these bearish investors have made a paper profit of nearly $8 billion. Joe Gilbert, portfolio manager at Integrity Asset Management, said SpaceX's stock price trend is not an isolated case. "Investors are pulling money out of large-cap tech and high-momentum stocks, and SpaceX falls into that category." Gilbert said, "We can't yet conclude that SpaceX's IPO is the top of this round of large-scale technology stocks, but at present, it does send a strong signal." With more SpaceX shares set to hit the market, investors and analysts are buzzing about how low its stock price could fall. Bearish investors generally view $100 per share as an important price target. 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 drop to zero, or even negative.