SpaceX stock dips below $150 debut before rebounding amid volatility
SpaceX's stock experienced significant volatility in its first weeks of trading following its record-breaking IPO on June 12 at $150 per share, pricing at $135. After soaring to an all-time high of around $225, the stock began declining sharply, dropping 16 percent on Monday and briefly falling below $150 on Tuesday before recovering. The selloff erased over $600 billion in market value from its peak. Market observers attributed the decline to several factors: concerns about the company's valuation at roughly 100 times annual revenue, a $25 billion bond offering announcement, broader tech sector weakness amid AI spending concerns, and upcoming insider stock unlock periods. SpaceX's stock closed slightly higher on Tuesday after early losses, snapping a three-day losing streak. The company remains well above its $135 IPO price but faces investor scrutiny over whether its $2 trillion-plus valuation can be justified by fundamentals.
Key facts
- SpaceX IPO priced at $135 per share on June 12, 2026, opening at $150 and peaking at $225 before declining
- Stock briefly fell below $150 debut price on Tuesday before recovering, erasing over $600 billion in market value from peak
- Company raised $75 billion in IPO proceeds at approximately $1.77 trillion valuation, largest US IPO on record
- Starlink generated $11.4 billion revenue in 2025 with 63 percent EBITDA margins and over 10 million subscribers
- SpaceX trades at roughly 100 times sales and 71 times EBITDA, far above industry averages
- Company announced $25 billion bond offering to repay bridge loans from xAI acquisition completed February 2026
- Nasdaq 100 and broader tech sector declined 1.4-2.2 percent amid AI spending and valuation concerns
How different outlets framed it
Left-leaning coverage: Left-leaning critics characterize the IPO as a dangerous bubble driven by AI hype and unsustainable retail investor enthusiasm. Progressive commentators highlight concerns about Musk's political influence, regulatory capture allowing fast-track index inclusion, and risks to pension funds and everyday workers whose retirement savings are automatically invested in the stock. They emphasize that roughly 90 percent of SpaceX's value rests on speculative AI promises disconnected from current profitability.
Right-leaning coverage: Right-leaning sources emphasize SpaceX's operational achievements and Musk's competence, including world-record launch frequency, technological leadership in reusable rockets, and Starlink's dominant market position. They stress the company's cash-flow positive status and recurring revenue from Starlink subscriptions as genuine strengths. Some optimistic observers view the selloff as a buying opportunity for long-term investors betting on AI infrastructure and space economy growth.
Limits of this briefing
Market data remains volatile and rapidly evolving; sources disagree significantly on whether current valuation is justified. Some optimistic pre-IPO analyses may not account for recent market turmoil, while bearish analyses may underestimate Starlink's genuine profitability and SpaceX's operational dominance in launch services.
Sources
- CNBC: SpaceX closes nearly 1% higher, snapping three-day losing streak Centre
- Al Jazeera: SpaceX shares drop below debut price before jumping amid $600bn sell-off Centre
- Marxist.com: SpaceX's trillion-dollar IPO: we will be made to pay for the AI bubble Left
- Seeking Alpha: SpaceX: Only The Valuation Is Astronomical Centre
- Yahoo Finance: SpaceX stock dips below $150 debut before rebounding Centre