SpaceX Falls Sharply as Post-IPO Momentum Faces Fresh Pressure

TLDR

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SpaceX shares fell 18% from their post-IPO peak, closing at $184.98 on Thursday.
The two-day decline erased approximately $620 billion in market value.
SpaceX’s valuation dropped from nearly $3 trillion to about $2.37 trillion.
The selloff followed SpaceX’s $60 billion all-stock acquisition of Anysphere, the maker of Cursor.
The deal is expected to dilute existing shareholders by roughly 3.4%.

SpaceX shares extended their decline this week after a sharp reversal erased roughly $620 billion in market value. The stock closed at $184.98 on Thursday, down 3.6% for the session and 18% below its post-IPO peak. The retreat has pushed many recent buyers near breakeven levels and shifted attention toward the company’s upcoming earnings release.

SpaceX Retreats After Record IPO Surge

SpaceX climbed rapidly after its public debut and briefly approached a $3 trillion valuation. However, selling pressure accelerated this week and reduced the company’s market value to about $2.37 trillion.

The stock reached an intraday high above $225 on Tuesday before reversing lower. According to CNBC, the five-day volume-weighted average price stood at $181.71, placing many recent buyers close to their entry levels.

The decline also affected SpaceX’s global ranking among public companies. The company briefly moved ahead of several technology giants before sliding to seventh place and trading near Taiwan Semiconductor Manufacturing Company in market value.

Retail demand powered much of the early rally after the listing. Vanda Research reported that retail investors purchased $369.8 million of SPCX shares during the first three trading sessions.

That buying pace weakened as the week progressed. Net retail purchases slowed to $9.1 million by midafternoon on June 18.

Cursor Acquisition Raises Dilution Questions

SpaceX announced plans on June 16 to acquire Anysphere, the company behind AI coding platform Cursor. The company structured the $60 billion transaction as an all-stock deal.

The acquisition introduces about 3.4% dilution based on SpaceX’s $1.77 trillion IPO valuation. Following the announcement, Morningstar reduced its fair value estimate to $62 from $63.

Morningstar stated that the transaction adds dilution to a stock it already considered overvalued. The research firm also placed its best-case valuation at $169 per share.

Some analysts viewed the deal differently and highlighted potential strategic benefits. Oppenheimer analyst Timothy Horan increased his price target to $250 after the acquisition announcement.

Horan said the purchase gives SpaceX access to AI talent, training data, and an established developer community. His revised target contrasted with more conservative valuation estimates from other firms.

Investors who received IPO allocations at $135 continue to hold gains despite the recent decline. However, many traders who bought shares after the debut now hold paper losses.

Attention now turns to several upcoming events that could affect trading activity. A lockup expiration scheduled for late July could expand the tradable share count substantially.

Reports have also pointed to a potential $20 billion bond offering linked to xAI financing. SpaceX is expected to report its first earnings results as a public company in late July.

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