SpaceX (SPCX) stock continued its retreat Thursday as investors took profits following one of the most explosive public market debuts in recent history. Shares fell more than 9%, to trade at $174.23, extending losses from the previous session as broader market sentiment weakened following the Federal Reserve's latest policy meeting.
The decline comes just days after SpaceX reached an all-time high of $212.40 during premarket trading on June 16. At that level, the company briefly surpassed a $2.75 trillion market capitalization, making it the world's fifth most valuable publicly traded company.
Despite the recent pullback, Wall Street analysts continue to see significant upside in the Elon Musk-led space and AI company.
Analysts remain bullish on SpaceX
According to reports, Arete analyst Andrew Beale initiated coverage of SpaceX on Thursday with a buy rating and $401 price target, joining a growing list of analysts who have raised price targets following the company's blockbuster Nasdaq debut.
The optimism reflects investor confidence in SpaceX's dominant position across reusable rockets, satellite communications, launch services, and emerging artificial intelligence infrastructure.
SpaceX shares began trading publicly last Friday after pricing its IPO at $135 per share. The stock opened at $150 and quickly attracted strong demand from both retail and institutional investors.
Within days, shares had surged more than 50% above their IPO price, creating one of the most closely watched market stories of the year.
Retail investors continue to drive momentum
The stock's extraordinary run has been fueled in large part by retail traders. Data from Vanda Research showed that SpaceX ranked as the most-purchased stock among retail investors for three consecutive trading sessions following its public debut.
The firm's analysis suggested that individual investors purchased roughly the same dollar amount of SpaceX stock over three sessions as they bought combined positions in Nvidia, Alphabet, Amazon, Microsoft, Meta Platforms, the Invesco QQQ Trust, and the SPDR S&P 500 ETF.
Researchers noted that SpaceX is beginning to trade similarly to the so-called Magnificent Seven technology stocks, where momentum and investor sentiment can significantly influence short-term price action.
That dynamic has become familiar to investors who follow other Musk-linked assets, including Tesla and Dogecoin, both of which have experienced periods of rapid gains followed by equally sharp pullbacks.
NASA deal highlights growing competition
While SpaceX remains the dominant force in the commercial space industry, the company faced a reminder this week that competition continues to intensify.
NASA selected Relativity Space for an orbital Mars mission on Wednesday, handing a significant contract to one of SpaceX's emerging rivals.
Although the award does not materially alter SpaceX's leadership position in launch services, it highlights growing opportunities for alternative space companies as government agencies diversify their partnerships.
What the latest pullback means for investors
The recent decline may be less about deteriorating fundamentals and more about normal market behavior following an exceptionally strong IPO rally.
After multiple sessions of uninterrupted gains, a break in momentum often signals that investors are reassessing valuations and locking in profits rather than abandoning a long-term investment thesis.
Even after the recent sell-off, SpaceX remains significantly above its IPO price and continues to command one of the largest market valuations in the world.
For investors, the key question is whether SpaceX can sustain its premium valuation as enthusiasm surrounding the IPO begins to fade and attention shifts toward execution, revenue growth, and competition. The answer could determine the next phase of the stock's journey following one of Wall Street's most remarkable debuts.
