SpaceX re-entry complete as it revisits its IPO price

SpaceX re-entry complete as it revisits its IPO price

SpaceX’s public debut has been nothing short of extraordinary, delivering one of the most explosive IPOs in modern market history. However, after a gravity-defying first three days of trading as a listed entity, the stocks re-entry is now completed after it retested its $135 IPO share price.

To recap the meteoric rise, SpaceX IPO raised a record-shattering $85.7 billion at $135 per share with an initial valuation of $1.77 trillion. On Friday the 12^th of June its share price debuted at $150 before hitting a high of $225.64 a few days later. That represented a 67% gain from the IPO price and, for a moment, pushed SpaceX’s market capitalisation to ~$3 trillion, making it more valuable than both Microsoft and Amazon at the time.

The gravitational pull began to take hold with its share plunged 16.4% on the night of the 22^nd of June to close at $154.60. This came after the company launched its inaugural debt offering. The proceeds to be used primarily to repay bridge loans associated with the xAI acquisition, along with general corporate purposes. 

The fall has accelerated in July, with the SpaceX share price falling in eight of the past ten sessions and briefly trading below its $135 IPO price overnight. The pressure stems from fading post-IPO hype, broader weakness in high-growth tech names, and mounting concerns over valuations. Trading at a reported 90-110x forward revenues, SpaceX’s multiple dwarfs even Tesla’s lofty 16x. On top of that, investors appear to be bracing for potential insider selling once the company reports its first earnings as a public company in late July or early August.

While many of those who participated in the IPO are likely taking a long-term five-to-ten-year view and will be largely unmoved by the recent volatility, others who missed the offering — or took quick stag profits in the opening days — may view the current pullback as an attractive entry point.

Ultimately, SpaceX remains the poster child for the “New Frontier” of technology. As such, it is expected to deliver a volatile ride — in keeping with the immense challenges and non-negligible risks of operating in one of the world’s most demanding industries..

SpaceX Daily Chart