SpaceX, Is the IPO Hype Waning... First Consecutive Price Drop After Listing

SpaceX showed a rapid rise after the IPO but experienced two consecutive declines as investors realized gains. The stock fell 3.6% on the 18th (local time), continuing a cumulative 8.3% drop over two days. Despite this, the stock remains 37% above its IPO price of $135. Based on the closing price, SpaceX's market cap was approximately $2.4 trillion, ranking it sixth globally. Although it temporarily surpassed Amazon, it later fell behind. Analysts view the decline as a natural correction after a sharp rise. Cat Ryu, IPOX Schuster analyst, noted that achieving a certain level of profit after the largest IPO and strong initial gains is not surprising. Dave Maja Roundhill Financial CEO added that the adjustment reflects a process of cooling down an overheated rally. SpaceX's stock surged sharply in the first two days post-IPO, surpassing $2 trillion in market cap. However, investors began questioning whether the high valuation is justified, especially regarding the potential profitability of its AI expansion plans. On the 16th, SpaceX announced acquiring an AI coding startup, Cursor, for $6 billion, and plans to issue at least $20 billion in corporate bonds for large-scale data centers and computing infrastructure. Individual investor activity also influenced volatility, as initial heavy buying has diminished. Volatility is likely to continue, but the market highlights the possibility of SpaceX being included in the Nasdaq 100, FTSE Russell, and MSCI indexes. Such inclusion could attract passive fund inflows. Andrew Bial, Arete Research analyst, recommended buying with a $401 target price, stating long-term growth potential remains significant. However, he added that the space industry faces technological challenges and potential delays, creating substantial uncertainty in future earnings forecasts.