Spacex stock price drop continues as shares were trading at $181.60 after closing at $185 on Thursday. The Elon Musk-led rocket maker and AI company was down 3.6 per cent following a 4.9 per cent loss on Wednesday. If the losses persist, SpaceX's market value of $2.52 trillion would shrink by more than $150 billion on Thursday. SpaceX's valuation surged past $2 trillion following its blockbuster Nasdaq debut last week. Its shares soared in their first two days of trading before giving up some gains as investors assessed whether the company's rich valuation can be justified by its costly AI push.
On the losing end, SpaceX fell for the second straight day since its ballyhooed debut on the U.S. stock market last week. Shares in Elon Musk's SpaceX lost 3.6 per cent in their second straight day of declines, after the space and AI company had rallied sharply for the first few days of trading after its market debut last Friday. Thursday also marked the once-in-a-quarter simultaneous expiry of derivatives contracts tied to stocks, index options and futures, also known as "triple witching," which can boost trading volume and aggravate volatility.
SpaceX Shares Drop
Shares of SpaceX dropped more than 6 per cent on Thursday at one point, as the post-IPO frenzy that briefly placed Elon Musk's rockets-to-AI firm among the world's top five most valuable companies appeared to fizzle out. The stock was last down 6.5 per cent at $178.50, after falling nearly 5 per cent in the last session. It was still more than 30% above its $135 offering price.
"Given the magnitude of the IPO and the strong initial performance, some degree of profit-taking is not surprising," IPOX Schuster analyst Kat Liu said. "This has been a particularly eventful and shortened trading week for the largest IPO in history," she added.
SpaceX Stock Price Drop Reason
Retail investors bought up SpaceX shares aggressively for the last three sessions, with a total net purchase of over $300 million. Activity, however, was muted on Thursday, with only $9.1 million worth of net purchases noted as of 2:00 p.m. (ET), according to Vanda Research.
Due to its relatively small public float and high valuation, analysts and portfolio managers have cautioned investors to anticipate volatility early in SpaceX's life as a public company.
SpaceX said on Tuesday it would buy Anysphere, the startup behind the popular AI coding agent Cursor, for $60 billion in stocks to boost its presence in the lucrative enterprise AI tools market.
The company's bankers are preparing to meet investors as early as next week to discuss a bond offering of at least $20 billion, a source said on Thursday, as the company seeks funding for its ambitious AI expansion.
Shares of other U.S. Space Companies Fall
Shares of other U.S. space companies were also down. Rocket Lab and Planet Labs dropped around 3 per cent, while AST SpaceMobile and Intuitive Machines declined around 7 per cent and 3 per cent, respectively.
