SpaceX shares tumbled more than 6% on June 18, extending losses for a second straight session as investor enthusiasm following the company’s blockbuster market debut showed signs of cooling, Reuters reported.
The stock fell 6.5% to US$178.50 after dropping nearly 5% on June 17, erasing more than US$150 billion in market value and reducing the company’s valuation to about US$2.52 trillion. Despite the pullback, SpaceX remains more than 30% above its US$135 IPO price.
The decline comes just days after the Elon Musk-led space and artificial intelligence (AI) company surged in its first two trading sessions, briefly becoming one of the world’s five most valuable companies as retail investors piled into the stock.
Trading activity from retail investors also appeared to slow. According to Vanda Research, net purchases of SpaceX shares amounted to just US$9.1 million by the afternoon of June 18, a sharp drop from more than US$300 million accumulated over the previous three trading sessions.
The broader space sector also came under pressure, with Rocket Lab and Planet Labs falling about 3%, while AST SpaceMobile and Intuitive Machines declined around 7% and 3%, respectively.
Analysts have cautioned investors to expect heightened volatility in SpaceX shares due to the company’s relatively small public float and lofty valuation. Investors are also weighing whether the firm’s aggressive expansion into AI can justify its rapid rise in market value.
Earlier this week, SpaceX announced a US$60 billion all-stock acquisition of Anysphere, the developer of AI coding assistant Cursor, as part of its push into the fast-growing enterprise AI market.
The company is also preparing to raise fresh capital, with its bankers expected to begin discussions with investors as early as next week on a bond offering of at least US$20 billion to help fund its ambitious AI expansion plans.
The latest sell-off suggests investors are taking a more measured view of SpaceX’s long-term prospects after an explosive debut that sent its valuation soaring past the US$2 trillion mark.
