SpaceX Gives Up Most IPO Gains After Three-Day Sell-Off
Synopsis
The aerospace company's shares are trading just above their listing price, highlighting growing investor caution following its blockbuster debut.
SpaceX shares have slumped for a third consecutive session and have all but erased the gains seen since its debut as a public company as they slip to just above their IPO valuation.
They have now shed almost 39 per cent from a mid-June intraday peak of $225.64 and are trading around $139.14 as of Thursday. While the shares still stand above their $135 IPO valuation.
The selloff reverses the hype surrounding SpaceX's high-profile June listing on Nasdaq, where the stock's market cap at one point approached $3 trillion.
It appears to show a shift in investor enthusiasm from listing day gains toward valuation and financial outlook, especially since the stock is still trading above its initial offer price.
Investors reassess valuation
Investors consider that the current pullback in price is caused by a bout of profit taking, but most importantly because SpaceX’s valuation already prices in significant future growth and because more shares are likely to become available to trade after an insider lock-up period expires.
Barron's previously suggested as much as 20 per cent of outstanding shares may become available on the market after the company issues its first earnings report, further exacerbating selling pressure. Financial health under scrutiny SpaceX has also attracted scrutiny of its financial statements.
In 2025, SpaceX recorded $18.6 billion in revenue but incurred a net loss of $4.9 billion, and Barron’s anticipates the company would not reach net profitability in 2026 based solely on SpaceX’s own operations.
Even after the selloff, SpaceX still ranks as one of the largest public companies in the world, but investors will now turn their focus toward upcoming earnings reports and the company's plans to launch and expand its satellite and business operations as well as unlockup expiration to discern the stock's prospects.
Source: Bloomberg
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
