SpaceX (NASDAQ: SPCX) shares have experienced a dramatic decline, falling over 73% from their intraday peak above $220 to $108 as of early August, following its June 11, 2026 IPO at $135 per share. The company, which at one point surpassed the valuations of Amazon and Microsoft, has seen its market capitalization shed about $1.2 trillion from its post-IPO high, currently hovering near $115, a significant discount to its IPO price. This downturn is attributed to an unsustainable valuation, with a price-to-sales ratio of approximately 70, making it highly dependent on investor sentiment.
Adding to the pressure are significant financial losses, as SpaceX reported a net loss of $4.9 billion for 2025 on $18.7 billion in revenue, and an additional $4.28 billion loss in the first quarter of 2026. Technical factors, such as the impending August 6, 2026, insider lock-up expiration, which made approximately 911.5 million shares eligible for trading, have also contributed to the sell-off. Another tranche of 319 million shares became eligible for trading shortly after, pushing the stock below its IPO price, although an earlier release on August 6 saw the stock temporarily rise.
Further dilution came from the acquisition of Anysphere, maker of the AI coding tool Cursor, via a merger on August 14, 2026. Cursor's shareholders received 389,289,254 shares of SpaceX Class A common stock, implying a $60.0 billion equity value for Cursor. This substantial share issuance occurred during a period of stock pressure. The broader space sector has also felt the impact, with Rocket Lab (RKLB) falling approximately 37% despite 63% revenue growth, and other stocks like AST SpaceMobile (ASTS), Planet Labs (PL), and Intuitive Machines (LUNR) experiencing declines as investors shift away from growth names and prepare to swap proxy investments for SpaceX itself.
