Shares of Elon Musk's aerospace company SpaceX have fallen to nearly their IPO price, hitting a low of $136.78 and closing at $139.14 on Monday. This represents a 7.2% decline below their opening price during the initial public offering in mid-June. The stock has lost over 38% from its all-time high of $225.64 per share reached on June 16, resulting in a market capitalization decrease of $831 billion from its peak of $2.67 trillion.
Analysts are divided on SpaceX's prospects. Some view the decline as an inevitable consequence of the company's weak financial performance, while others consider it a temporary drop. SpaceX reported a net loss of approximately $4.9 billion on revenue of $18.6 billion in 2025. This contrasts with Broadcom, a peer that has surpassed SpaceX in market value, which reported a net profit of $23.1 billion on revenue of $63.9 billion. Despite these concerns, 27 out of 34 Wall Street analysts recommend buying or overweighting SpaceX stock.
The sell-off has erased most of the gains for investors who bought shares after the IPO, with some referring to the stock as resembling a "meme stock" due to its initial "AI story" narrative. Michael Ashley Shulman of Cerity Partners noted that trading near the IPO price indicates the "narrative premium" has dissipated in the short term. The company's valuation has come under scrutiny due to the delay in reaching near-term profitability and its large-scale reorientation towards creating orbital data centers. SpaceX briefly surpassed Amazon and Microsoft in market capitalization on June 16, but has now fallen to seventh place among U.S. corporations, behind Broadcom.
SpaceX went public on June 12, 2026, at $135 per share, raising $85.7 billion and achieving a valuation of over $1.7 trillion. The company's peak market capitalization was nearly $2.9 trillion just four days later. However, the stock has since fallen sharply, reducing its valuation to about $1.83 trillion at Monday's close. Starlink remains a primary revenue driver, contributing $11.4 billion and serving over 10.3 million subscribers in Q1 2026. Analysts expect revenues to reach between $34 billion and $43 billion this year. The sell-off also occurred despite positive operational news, such as the FAA clearing the way for Starship Flight 13, and the company's inclusion in the Nasdaq-100 index.
Samuel Kerr, a Mergermarket analyst, highlighted the divide among shareholders, stating that those who invested during the IPO are stable, while those who bought in the initial days are unhappy. He noted that if SpaceX fulfills its ambitious goals, such as colonizing Mars, deploying a 1 million satellite constellation, and creating lunar transporters, it could become the most valuable company in history. Elon Musk himself expressed that SpaceX would be worth more than the rest of Earth combined if their goals are achieved.
