SpaceX shares fall below IPO price for first time
8 reported
SpaceX shares dropped below their initial public offering price for the first time on Wednesday, sliding 1.5% to $134, below the $135 IPO price. The decline comes just over a month after the company completed the biggest IPO ever, briefly pushing its market valuation above Microsoft and Amazon. The stock’s retreat is attributed to profit-taking, valuation reassessment, and unwinding of bullish positioning, according to analysts. SpaceX turned to the bond market last month to raise $25bn for costly technology infrastructure. The company lost $4.9bn last year, and critics argue its valuation was stretched. The stock has dropped 13% since being added to the Nasdaq 100. Investor focus will shift to the company’s first results after listing, expected in the first week of August.
What’s reported
SpaceX shares fell 1.5% to $134 on Wednesday, below the $135 IPO price.
The IPO was the biggest ever and briefly made Elon Musk the world’s first trillionaire.
The company’s market valuation was above $2.6tn last month, compared to $1.75tn on Wednesday afternoon.
SpaceX raised $25bn from the bond market last month.
The company lost $4.9bn last year.
The stock has dropped 13% since being added to the Nasdaq 100.
First results after listing are expected in the first week of August.
The first phase of the IPO lock-up period is set to expire after the report, allowing eligible employees and some early shareholders to sell holdings.
Key figures
Elon Musk, founder of SpaceX
Daniela Hathorn, senior market analyst at Capital.com
Steve Sosnick, chief market analyst at Interactive Brokers
Parmar, analyst (first name not provided)
Sources: The Guardian
