SpaceX share price drops below stock market debut
SpaceX’s share price has fallen below the price it first appeared on the stock market just over a month ago, falling sharply from its post-float peak.
The price of a single share in Elon Musk’s rocket, satellite and artificial intelligence (AI) company fell to $132.62 (£98.24) on Wednesday, below its initial listing of $135 in June.
SpaceX’s initial public offering (IPO) made Musk the world’s first trillionaire. Compared to its all-time high, the stock price is currently down 41%.
If the price holds or falls further, this will mean that those who purchased the stock during the IPO will lose money on their investment.
Even amid a tumultuous few weeks for tech stocks, SpaceX took a particular hit.
The company’s stock price fell more than 2 percent on Wednesday, compared with a 0.2 percent decline on the broader Nasdaq index, where SpaceX shares are listed.
SpaceX shares have been volatile since they began trading on the public exchange a little more than a month ago.
Following an initial investor frenzy that saw the company gain more value than Amazon and Microsoft, the price of the shares began to decline.
Initially, SpaceX was seen by investors as the first chance to invest in an AI company, financial market analysts and experts recently told the BBC:
Earlier this year, SpaceX acquired Musk’s AI start-up xAI, which was recently renamed SpaceXAI, marking its first foray into an AI-focused business.
XAI is known for its controversial chatbot Grok, but thanks to this acquisition, SpaceX now leases data center capacity to other tech companies.
The company’s main field of activity is the production and launch of rockets and telecommunication satellites called Starlink.
SpaceX shares fell 8% when Starlink announced it would cut prices in the Memphis, Tennessee, area due to local concerns about a major data center project.
“There’s been nothing lately to remind people of some of the catalysts for why they bought SpaceX,” Steve Sosnick, chief market analyst at Interactive Brokers, told Reuters.
SpaceX is expected to release its first public earnings report in August.
“A stock falling a few dollars below its IPO price is not a tragedy in itself, but SpaceX is heavily watched and has a significant role in investor psyche,” Sosnick added.
SpaceX did not immediately respond to a request for comment.
