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Shares slip under IPO
SpaceX shares fell below $135 on Wednesday afternoon, dipping beneath the price set for the company’s blockbuster June 12 initial public offering that raised approximately $86 billion.
“SpaceX shares fell below $135 on Wednesday afternoon, dipping beneath the price set for the company’s blockbuster June 12 initial public offering that raised approximately $86 billion”
The stock traded as low as $133 before recovering to hover near the IPO price, continuing a steady decline from its post-IPO peak above $200.
CNBC said the shares dipped about 1% on Wednesday and closed at $135.27 per share as hype around the reusable rocket maker fizzled.
CNBC also tied the pullback to the company’s 13th Starship test flight, slated for Thursday, as the market’s enthusiasm cooled about a month after the IPO.
Nasdaq-100 and volatility
Newser reported the stock slid for a fourth straight day on Wednesday, dipping below its $135 IPO price for the first time, and said it fell as low as $132.15 before rising to just under $135.
CNBC said SpaceX’s unwind followed last week’s induction into the Nasdaq-100, which brought passive investors into the stock through index-tracking funds after a rule change shortened the eligibility period to 15 trading days.
TechCrunch described the volatility as partly driven by the fact that just 4% of the company’s total shares are trading on the Nasdaq, calling it a small “float” that has created wild swings during the first month of trading.
TechCrunch added that the dip on Wednesday followed a steady decline in the month since the company went public, after shares initially rose to more than $200 in the days after the IPO.
Starship test as catalyst
Ahead of Thursday, SpaceX faces an immediate test of investor confidence with the planned launch of its Starship rocket, the first since a booster failure in May.
“Investors are hitting the brakes on SpaceX barely a month after its splashy market debut”
Bitcoin World said SpaceX does not plan to recover either the booster or the upper stage, and that both are expected to be destroyed during a simulated landing in the Gulf of Mexico, regardless of mission success.
TechCrunch said the Thursday flight would be the first Starship flight since it experienced a booster failure in May, and it reiterated that the company does not plan to try to recover the Starship booster or upper stage on this flight.
The same TechCrunch account framed the stock’s next move as an early test of the durability of its price, with SpaceX’s IPO also setting the table for other Big Tech companies like Anthropic and OpenAI to go public after they filed confidentially for an IPO.
