SpaceX Stock Falls Below $120
SpaceX shares stayed under heavy pressure on Monday as investors reacted to the uncertainty surrounding the company’s performance after its public market debut.
Shares of SpaceX, trading under the ticker SPCX, fell 3.34% during the regular session to close at $119.85. The decline was the stock’s seventh consecutive losing session and pushed it to a fresh record low.
SpaceX share price (Source: Google Finance)
SpaceX shares have now fallen approximately 47% from their record high above $225, which was reached shortly after the company completed its highly anticipated initial public offering in mid-June.
The latest sell-off followed several setbacks involving SpaceX’s launch operations. The company scrubbed a Falcon 9 mission that was scheduled to carry 24 satellites into orbit from Vandenberg Space Force Base in California. SpaceX also aborted a Starship flight test last Thursday, which only added to concerns about the progress of one of its most important development programs. The company is expected to make another attempt at the Starship test flight this Thursday.
However, the weak performance of SpaceX shares has also caused some concern among other artificial intelligence companies considering public listings. The stock’s decline comes during a more cautious market environment for newly listed businesses, potentially making other IPO candidates more hesitant to proceed.
Earnings and Lock-Up Expiration in Focus
Investors are now awaiting SpaceX’s first earnings report as a public company, which is expected in August but has not yet received a confirmed release date. The report will give the market a clearer view of the company’s revenue, expenses, launch activity and future growth outlook.
It could also determine whether investors believe the recent stock decline has created a buying opportunity or is part of a deeper concern about the company’s valuation.
Another important event will be the expiration of restrictions covering approximately 911.5 million shares held by employees and early investors. The first lock-up expiration is expected on the second trading day after the earnings report.
SpaceX shares showed signs of stabilizing before Tuesday’s opening bell. The stock rose 1.86% in pre-market trading to approximately $122.08.
