SpaceX Shares Decline Amid Cooling IPO Rally
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 02 2026
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Source: Fool
SpaceX shares fell 10.12% as the stock hit a 5-day low, reflecting a broader trend of declining prices following the initial excitement of its IPO.
The decline comes amid a cooling off from the post-IPO rally, where the stock surged 37% shortly after debuting. Investor concerns about future performance have led to ongoing declines, despite the company's strong market debut and significant cash reserves of approximately $100.8 billion. The recent selloff indicates a shift in market sentiment, as SpaceX's stock has experienced volatility, dropping 5% and 3.6% in the days following its initial surge.
This volatility highlights the challenges SpaceX faces in maintaining investor confidence after its record-setting IPO. As the market adjusts to the initial hype, the company will need to demonstrate sustained growth and performance to reassure investors.
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Analyst Views on SPCX
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Current: 154.600
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About SPCX
Space Exploration Technologies Corp. designs, manufactures, launches, and operates products and services built on technologies, including rockets and spacecraft. The Company's segments include Space, Connectivity, and artificial intelligence (AI). Its Space segment designs, manufactures, and launches reusable rockets to provide access to space. Its Connectivity segment operates broadband data and communications network powered by approximately 9,600 Starlink broadband and mobile satellites in Low-Earth orbit, delivering connectivity to consumer, enterprises, and government customers over 164 countries, territories, and other markets. In its AI segment, it operates a vertically integrated AI platform spanning its truth-seeking frontier model Grok, AI solutions for consumer and enterprise customers, X-its real-time information, entertainment, and free speech platform and AI computational infrastructure.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Reaction: Ahead of the launch, SpaceX's stock fell 3%, continuing a three-day losing streak post-IPO, reflecting market caution regarding the company's future performance.
- Market Value Fluctuation: SpaceX has seen a $600 billion drop in market value amid debt funding plans, highlighting the financial pressures and market challenges the company faces as it seeks to expand its operations.
See More
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- Market Capitalization: Despite the stock's volatility, SpaceX maintains a market cap of over $2.4 trillion, reflecting investor expectations for future growth, particularly in the artificial intelligence sector.
- AI Market Opportunity: In its IPO prospectus, SpaceX claimed a total addressable market of $28.5 trillion, with over 90% related to AI, highlighting the company's strategic focus on this area, especially with plans to establish orbital data centers to meet global AI demands.
- Potential of Orbital Data Centers: SpaceX asserts that orbital data centers can effectively address land and cooling cost challenges faced by terrestrial data centers, with space-based solar energy generation being five times more efficient, showcasing its competitive edge in future data infrastructure development.
See More
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- Market Decline: The S&P 500 fell by 1.4%, the Nasdaq 100 dropped 3.3%, and the Dow Jones slipped 0.1%, indicating a waning investor confidence in tech stocks as doubts about the sustainability of the AI boom emerge.
- Semiconductor ETF Plunge: The VanEck Semiconductor ETF (SMH) plummeted 7%, primarily driven by declines in shares of Micron, Broadcom, and Nvidia, reflecting market concerns over the semiconductor sector's outlook and prompting investors to reassess their strategies.
- Investor Sentiment Shift: While retail sentiment for SPY was bearish, QQQ and DIA showed bullish sentiment, indicating a divergence in market perceptions that could influence future capital flows across different sectors.
- Foreign Selling Intensifies: The drop in South Korean equities, coupled with foreign institutional investors offloading approximately $2.5 billion in Kospi shares, exacerbates concerns that the recent boom in tech and AI stocks may be overblown, potentially leading to a decline in global investor confidence in these assets.
See More
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- Market Value Comparison: SpaceX briefly surpassed Microsoft and Amazon in market cap during its public debut, and despite a 31% drop from its peak, it remains the seventh-most valuable company globally at approximately $2 trillion, surpassing Tesla and Meta, highlighting its strong competitive position in commercial space.
- AI-Driven Growth: Analysts forecast that SpaceX's revenue will reach $330 billion by 2030, with 57% expected to come from AI, indicating that its investments in AI will be a major driver of future revenue growth, especially following its merger with xAI.
- Capital Expenditure Plans: Tesla plans to invest $25 billion this year in humanoid robots and autonomous taxis, while SpaceX is building a Gigasat factory in Texas aimed at high-volume production of AI data center satellites, showcasing differing strategic focuses in technology investments.
- Changing Competitive Landscape: While Tesla faces fierce competition in the electric vehicle market from companies like Waymo, SpaceX has virtually no true rivals in the commercial space launch sector, providing it with a unique advantage for future market expansion.
See More
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- Tech Stock Status Enhancement: Alphabet's inclusion further solidifies the importance of the tech sector in major indices, reflecting investor confidence in the future growth potential of technology stocks.
- Investor Strategy Adjustment: With Alphabet's addition, investors may reassess their strategies and increase allocations to tech stocks, aiming for higher returns amid future market fluctuations.
See More
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- Strong Bond Offering Demand: SpaceX's inaugural bond offering drew demand exceeding three times its long-term debt, with expectations to raise between $20 billion and $25 billion, as demand reached $89 billion, showcasing the market's high regard for its financing capabilities.
- Positive Retail Sentiment: While related ETFs showed mixed performance, retail sentiment around SpaceX remained neutral with a nearly 240% surge in message volume, indicating a significant increase in market interest regarding its future developments.
- Market Recovery: After three consecutive days of losses, SPCX stock is on track to rise about 3% on the day, reflecting optimistic expectations from investors regarding its long-term potential and further solidifying its position in the market.
See More
