SpaceX stock crossed below its $135 initial public offering price on Wednesday for the first time since the company debuted last month, marking a fourth consecutive down session as the initial excitement surrounding the rocket company continues to dissipate.
The stock slid to $134, down about 1.5%. The decline puts the company's market capitalization at roughly $1.75 trillion, well below the $2.6 trillion peak reached during its post-IPO run last month. Investors who bought at the offering price are now sitting on paper losses for the first time.
Daniela Hathorn, senior market analyst at Capital.com, told Reuters that the selloff appears to stem from investors locking in gains, a reassessment of the company's lofty valuation, and the reversal of heavily bullish bets built up around one of the most anticipated market debuts in recent memory. Justus Parmar, CEO of SpaceX investor Fortuna Investments, pointed to selling pressure from early holders. "I think the elephant in the room is there's a lot of folks that are in the stock and maybe some of them or a good number of them are wanting to take some liquidity, which is essentially putting a lot of pressure on the stock," Parmar said.
Anxieties about the heavy borrowing used to finance AI buildouts, along with the potential impact of Federal Reserve rate increases on richly priced technology stocks, have also played a role in the selloff, according to Reuters. SpaceX raised $25 billion in the bond market last month to fund technology infrastructure buildout.
SpaceX stock had climbed more than 40% in its first two trading sessions, at one point pushing the company's valuation above those of both Amazon $AMZN and Microsoft $MSFT, before a sharp reversal sent it down 16% in a single session. SpaceX's inclusion in the Nasdaq $NDAQ-100 last week channeled demand into the shares via passive funds that track the index, an outcome enabled by a recently adopted rule cutting the waiting period for newly public companies to just 15 trading days. Within a single session of its Nasdaq-100 debut, the stock had already surrendered the $150 level at which it first traded.
With Wednesday's decline factored in, SpaceX shares now sit roughly 34% off their all-time high. The company's 13th Starship test flight is scheduled for Thursday. SpaceX posted a net loss of $4.9 billion in 2025 and lost an additional $4.28 billion in the first quarter of 2026.