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SpaceX shares drop 16 percent to 154.60, extending a three day slide after announcing investment grade bonds and a Reflection AI deal, but remain above the 135 IPO price
SpaceX Crew-10 launches aboard a SpaceX Falcon 9 rocket carrying the Dragon spacecraft at Kennedy Space Centre in Florida, March 2025. (Image Courtesy: U.S. Air Force photo courtesy of NASA by Aubrey Gemignani)
SpaceX shares fell for a third consecutive day on Monday, with the stock dropping 16% to close at $154.60, its lowest level since the company’s first trading session, wiping over $600 billion in combined market value across three days, according to Bloomberg data.
The sell-off came after SpaceX said it will sell investment-grade bonds for the first time, part of a planned borrowing programme to fund its artificial intelligence ambitions. Bloomberg reported last week that the company is seeking to raise at least $20 billion from the offering.
The three-day decline has pushed SpaceX’s total loss to 23% since listing, though shares still trade roughly 15% above their $135 IPO price. The company’s market capitalisation now sits just above $2 trillion.
“Sellers are back in control. Anyone in the world who wanted to buy this has bought it already,” Michael O’Rourke, chief market strategist at JonesTradingtold Bloomberg.
The Role Of Retail
SpaceX went public through a record $75 billion initial public offering. On day one, only 4.2% of total shares outstanding were available to trade, the type of low float that typically produces sharp swings in either direction, especially when retail demand is heavy.
And retail demand was heavy. Vanda Research data showed retail investors bought a net $405 million in SpaceX stock across its first five trading sessions, more than net buying across all Magnificent Seven stocks combined in the same period. On Monday, retail traders were still net buyers, though inflows came in below last week’s pace, Vanda data showed.
On the same day the stock fell, SpaceX announced a multibillion-dollar computing agreement with Reflection AI, an artificial intelligence startup, to supply computing resources. The company had earlier acquired Elon Musk’s xAI in February, a deal that drew investor attention ahead of anticipated IPOs from OpenAI and Anthropic, both of which are expected to list this year at valuations of around $1 trillion each.
KeyBanc Capital Markets initiated coverage of SpaceX with a sector weight rating, a hold-equivalent, and the first such rating tracked by Bloomberg since the IPO.
Analyst Michael Leshock wrote that SpaceX is set to remain the leader in space-launch and adjacent verticals, but that much of its long-term value is already priced in. “SpaceX possesses significant disruptive growth avenues, though we believe this is reflected in current valuation and risk/reward appears balanced,” Leshock wrote.
About the Author
Anoshito Banerjee is a digital journalist at CNN-News18, specialising in Indian foreign policy, global diplomacy, South and West Asian geopolitics, and strategic affairs. His reporting spans hard news…Read More
Washington D.C., United States of America (USA)
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