SpaceX Shares Drop $620 Billion: Has the Post-IPO Correction Started?
After its record-breaking stock market debut, SpaceX is losing value fast because of a major AI deal and cooling demand. Investors are now watching the lock-up and the possible extra pressure on the stock.
Key Takeaways
- SpaceX shares have fallen 18% since the post-IPO peak, leaving the average open-market investor almost breakeven.
- In two days, about $620 billion in market value disappeared, and the valuation dropped from nearly $3 trillion to $2.37 trillion.
- The stock pressure followed the announced $60 billion Anysphere acquisition and weaker retail inflows.
SpaceX has seen a sharp pullback in its stock price in a short amount of time. Since the peak after the IPO, the shares have dropped 18%, leaving the average investor who bought on the open market now almost breakeven. This slide raises questions about how sustainable the initial rally is after the biggest IPO ever.
Valuation Drop and Market Position
The shares recently closed at $184.98 (€161), down 3.6% on the day. In just two days, about $620 billion (€541 billion) in market value vanished, pushing the SpaceX valuation down from nearly $3 trillion (€2.6 trillion) to $2.37 trillion (€2.1 trillion). That moved the company from fourth to seventh place in the global ranking of publicly traded companies, in direct competition with names like TSMC.
The stock drop followed SpaceX's announcement that it would acquire Anysphere, the maker of the AI coding tool Cursor, for $60 billion (€52.4 billion) in a stock swap. This deal creates dilution of about 3.4% compared with the original IPO valuation of $1.77 trillion (€1.5 trillion). Analysts like Morningstar have adjusted their valuation targets accordingly and are pointing to possible overvaluation in the stock.
Impact on Retail Investors and Market Expectations
The initial rally was partly driven by a strong wave of retail buying, with more than $370 million (€323 million) invested in the first days after the IPO. That interest has now cooled sharply, with net inflows of just $9 million (€7.9 million) on the last day of the analysis period. Investors who got shares during the IPO through platforms like Robinhood and Fidelity are still in profit, while those who bought later are often sitting on losses now.
The market is also factoring in future catalysts like an upcoming lock-up period in July, which could double the number of shares available to trade, and a possible $20 billion (€17.5 billion) bond issue to help fund xAI. These developments could add more pressure to the stock price. The fast revaluation fits into a broader debate about the AI hype, which investors were already warning about ahead of the SpaceX IPO.
Why This Matters for European Investors
Even though SpaceX is an American company, the stock action and market sentiment around this record-breaking IPO can also matter for European investors. The size and impact of this stock market debut show how tech innovation and AI acquisitions can affect valuations of tech companies around the world. European investors can take away lessons about the volatility and risks that come with major tech IPOs and the role of AI in corporate strategy.
