Daijiworld Media Network - New York
New York, Jun 23: Shares of Elon Musk-led SpaceX fell for the third consecutive session, wiping out more than $600 billion in market value, after the company announced its first-ever investment-grade bond sale to fund its expanding artificial intelligence ambitions.
SpaceX shares dropped 16 per cent on Monday to close at $154.60, their lowest level since the company’s first day of trading. The decline pushed the three-day loss to 23 per cent and reduced the company’s market capitalisation to just above $2 trillion.
“Sellers are back in control. Anyone in the world who wanted to buy this has bought it already,” said Michael O’Rourke, chief market strategist at JonesTrading.
The company’s early trading sessions after its record $75 billion initial public offering witnessed sharp volatility, similar to other newly listed companies with limited public share availability and strong retail investor demand. Only around 4.2 per cent of total shares were available for trading on the first day.
Despite the recent decline, SpaceX remains the sixth-largest company globally, with shares still about 15 per cent above its IPO price of $135.
The rocket, satellite and artificial intelligence company is reportedly looking to raise at least $20 billion through its first bond offering. SpaceX also announced a multibillion-dollar agreement to provide computing resources to AI startup Reflection AI.
Investors have closely tracked SpaceX’s AI expansion following the company’s acquisition of Elon Musk’s xAI in February. The move has increased attention on upcoming public listings of AI companies such as Anthropic and OpenAI, both of which are reportedly considering IPOs with expected valuations of around $1 trillion.
Retail investors showed strong interest in SpaceX following its listing. According to Vanda Research, retail traders bought a net $405 million worth of SpaceX shares during the first five trading sessions — more than their combined purchases across all “Magnificent Seven” technology stocks during the same period.
Retail investors remained net buyers on Monday, though the buying momentum was lower compared to the previous week.
Meanwhile, KeyBanc Capital Markets initiated coverage of SpaceX with a “sector weight” recommendation, effectively a hold rating. Analysts led by Michael Leshock said SpaceX is expected to remain a leader in space launch and related industries but noted that much of its future growth potential may already be reflected in the current valuation.
“SpaceX possesses significant disruptive growth avenues, though we believe this is reflected in current valuation and risk/reward appears balanced,” Leshock said.