SpaceX stock tumbles after announcing $60 billion Cursor acquisition

20 June 2026 · Source balance: Centre

SpaceX stock has fallen sharply in the days following its announcement of a $60 billion acquisition of Cursor, the AI coding startup. The deal was announced on June 16th, just four days after SpaceX's record-breaking IPO on June 12th at $135 per share. The stock initially surged to over $225 before falling back to around $185 by Thursday. Analysts cite several concerns about the move. First, the all-stock deal will dilute existing shareholders by roughly 3.4 percent. Second, SpaceX is paying Cursor shares that have appreciated significantly since the IPO, raising questions about valuation. Third, some analysts view the company as overpriced relative to fundamentals. Morningstar analysts cut their fair value estimate to just $62 per share, suggesting potential downside of about 66 percent from current levels. Other analysts, like Oppenheimer, are more bullish, projecting $250 per share by year-end based on synergies between Cursor's AI technology and SpaceX's computing resources. The market reaction reflects investor uncertainty about the strategic rationale and valuation of the deal amid high post-IPO volatility.