SpaceX has erased almost $1 trillion in stock market value in five weeks — more than most individual companies in the world are worth.
Retail investors who fought for shares at the $135 IPO price are down about 10% now. Those who bought four days later, at the June 16 peak of $225.64, are down around 40%. A 40% discount on the hottest company in the world may look like an obvious buy, but that instinct is exactly what needs examining.
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"Hype and quality are not the same thing," Matthew Fleissig, CEO of the wealth management firm Pathstone, warned in a recent MarketWatch column. The next two weeks will test which one SpaceX has been trading on.
SpaceX (NASDAQ:SPCX) is set to report its first earnings as a public company on Aug. 4, and two trading days after that, hundreds of millions of insider shares will become eligible to sell for the first time. Short sellers already control close to a third of the stock's tradable float.
SpaceX priced its IPO at $135 a share on June 11, raising $85.7 billion in what became the largest public offering in history. Shares jumped to $160.95 on their first day of trading on June 12, then kept climbing. By June 16, the stock touched an intraday high of $225.64, pushing the company's valuation briefly past $2 trillion.
It's been mostly downhill since. Shares fell for seven straight sessions through July 20, sliding 21% in that stretch to close at $119. The stock finally caught a break Tuesday, climbing as much as 7% to $128 after Macquarie analysts stood by their outperform rating and called the selloff a buying opportunity. Shares lost some steam in intraday trading, however, and closed at $123.54.
Along the way, Meta passed SpaceX in market value — $1.64 trillion to $1.59 trillion.
The company's own missteps haven't helped. SpaceX scrubbed a Falcon 9 launch that was supposed to put 24 Starlink satellites in orbit, and pushed back its 13th Starship test after several engines failed to start — two of them had to be pulled and replaced. Growth is slowing too. SpaceX grew revenue 33% in 2025; in the first quarter of this year, that rate fell to 15%. And the company is still deep in the red — with a $4.9 billion net loss last year on $18.7 billion in revenue.
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