SpaceX stock fell on Wednesday, putting a pause on the momentum that had built since the company's market debut last Friday.
Since Friday's IPO, which priced shares at $135, the stock had risen roughly 40% through Tuesday's close. At its peak Tuesday, the company's valuation had leapfrogged both Amazon $AMZN and, briefly, Microsoft $MSFT, placing SpaceX among the four most valuable U.S. companies. Tuesday's closing price put the company's total valuation at $2.66 trillion.
Wednesday's decline comes as some analysts question whether the company's fundamentals can eventually justify its valuation. "Investors are trading the story, they're trading the action, they're trading the excitement, they're trading Elon Musk, but at some point the rubber meets the road in terms of the fundamentals having to match up with that excitement," Peter Boockvar, chief investment officer at One Point BFG Wealth Partners, said on CNBC's "Squawk Box Asia."
"If they can deliver, then the upside is certainly there, but the valuation is so enormous that the company is going to really have to show itself in growing into that valuation," Boockvar added. "I think that that's going to take at least a couple of years."
The company's financials showed a $4.9 billion net loss for full-year 2025, with an additional $4.28 billion loss recorded in this year's first quarter. Musk posted on X $TWTR on Sunday that the company "might be able to reach approximately" $1 trillion in revenue by 2030.
Enthusiasm for SpaceX's position at the center of two high-growth industries — satellite internet via Starlink and commercial launch through its reusable rockets — helped fuel the post-IPO rally that briefly lifted SpaceX's market cap above Amazon's. The stock's rise had made it one of the most closely watched new listings in recent memory.