- SpaceX shares fell nearly 10%, dropping over $50 from post-IPO highs on Nasdaq
- Stock declined to $174.69, down from a 52-week high of $225.64, signaling cooling sentiment
- SpaceX's market cap briefly surpassed Amazon and Microsoft, reaching about $2.52 trillion
Shares of Space Exploration Technologies Corp. tumbled nearly 10% on Thursday, extending recent losses and leaving the stock more than $50 below its post-IPO high. The decline signals a cooling of the enthusiasm that propelled the space technology company's shares to record levels earlier this year, as investors increasingly scrutinise valuations and future growth prospects.
The stock fell 8.93% to $174.69 in midday trading on Nasdaq after touching an intraday low of $172.11. SpaceX shares are now significantly below their 52-week high of $225.64, reflecting a sharp pullback in investor sentiment after a strong post-listing rally.
The latest slide comes after an extraordinary debut for the Elon Musk-led company. SpaceX shares had surged more than 40% following last week's IPO, which priced shares at $135, briefly making the company one of the world's most valuable listed firms. At one point, SpaceX's market capitalisation surpassed that of Amazon and even overtook Microsoft before settling below Amazon's valuation. The company was valued at approximately $2.52 trillion at Wednesday's close.
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Investor enthusiasm, however, began showing signs of fatigue this week. Shares declined 5% on Wednesday before extending losses on Thursday, suggesting traders are reassessing whether the post-listing rally ran ahead of fundamentals.
Despite the recent weakness, the company continues to post solid business growth. SpaceX reported first-quarter revenue of 469.4 crore, up 15.4% from a year earlier, underscoring continued demand across its commercial space, satellite and AI-related businesses.
The company also announced a boardroom change on Wednesday, appointing venture capitalist and longtime Musk ally Roelof Botha as an independent director and member of the audit committee, effective immediately. Botha becomes the eighth member of SpaceX's board, where Musk serves as chairman in addition to his roles as chief executive officer and chief technology officer.
Corporate governance remains a key focus for investors. Musk controls more than 82% of SpaceX's voting rights and owns shares worth over $1 trillion, giving him overwhelming influence over the company's strategic direction and limiting the ability of outside shareholders to shape decision-making.
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Adding to investor optimism about the company's long-term prospects, Musk said in a post on X earlier this week that SpaceX "might be able to reach approximately" $1 trillion in annual revenue by 2030.
For now, however, markets appear to be shifting from IPO euphoria to a more measured assessment of the company's valuation, growth trajectory and execution risks.
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