June 18 - Shares of Elon Musk's rockets-to-AI company moved lower on Thursday, dropping nearly 9% as momentum from a recent post-IPO surge showed signs of cooling. The stock finished the session down 8.8% at $174.8, after a decline of almost 5% in the prior trading day.
Despite the pullback, the share price continues to sit well above the company's initial offering level - trading more than 29% higher than the $135 offering price.
Earlier in the week, SpaceX's market capitalization eclipsed that of Amazon and for a short period also exceeded Microsoft's market value. Those moves briefly placed the company among the five most valuable firms worldwide, a ranking that proved transitory as the stock retreated.
The trading slump comes amid reports that SpaceX's bankers were preparing for a bond sale valued at a minimum of $20 billion. In the same week, the company announced an all-stock acquisition of Anysphere - the startup behind the AI coding agent Cursor - for $60 billion.
Market participants reacted to the combination of large-scale financing plans and a major acquisition announcement while digesting the stock's swift ascent since the offering. The price action underscored the degree of volatility following the company's public debut and the sensitivity of its valuation to both corporate developments and investor sentiment.
Context and implications
The recent swings in SpaceX's share price illustrate how quickly valuations can re-rate in the immediate aftermath of an initial public offering, particularly for firms that combine capital-intensive business units with high-profile strategic moves. The reported bond sale preparations and the $60 billion all-stock purchase are material items that market participants will likely monitor closely as they assess balance sheet effects and dilution implications.
At the same time, the company's brief rise past the market capitalizations of established large-cap technology firms highlights the pace at which investor expectations can shift - and then shift back - in short order.