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SpaceX stock tumbles 23% from its high, as average investor sees gains wiped out
SpaceX stock tumbles 23% from its high as average investor sees gains wiped out
Shares of Elon Musk’s SpaceX tech conglomerate plunged 16% Monday to close below their price on June 12, the date of its massive initial public offering.
It was the third straight trading day of declines for a company that just 10 days ago orchestrated the largest IPO ever.
At Monday’s closing price of $154.60, average investors who bought SpaceX shares on the open market after its debut have now seen most of their gains disappear, market data shows.
Shares closed at $160.90 on June 12, the day the stock began trading on the Nasdaq exchange. On June 16, they hit a high of $201.80 per share.
When trading ended Monday afternoon, the shares were down about 23% from their peak a week earlier.
The company itself — and holders of its previously privately held shares — made more than $85 billion in the initial public offering. And with a market cap of about $2 trillion, SpaceX remains more valuable than either Walmart or Facebook parent Meta.
SpaceX’s sell-off came amid a broader market drawdown Monday in which shares of Google parent, Alphabet, notched their worst one-day performance in over a year.
The broad S&P 500 index closed down 0.43%, while the tech-heavy Nasdaq fell 1.3%.
Oil prices declined Monday to lows not seen since March amid progress in talks between the U.S. and Iran.
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But that was little comfort to tech investors, who are concerned that short-term inflation will increase the debt burden of mega-cap companies that have borrowed large amounts of money to fund their artificial intelligence infrastructure.
Bloomberg News reported Monday that SpaceX was looking to raise at least $20 billion through a bond sale.
The move spooked investors who are “wary of the substantial cash required to fund technological ambitions,” Jose Torres, a senior economist at Interactive Brokers financial group, said in a note to clients Monday afternoon.
A host of consumer-focused stocks also declined significantly Monday, including Amazon, Chipotle, McDonald’s, Home Depot and Netflix.
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