• SpaceX shares fell below their $135 IPO price for the first time on Wednesday, dropping to $132.15 intraday before closing just above that level, according to Bloomberg and the Honolulu Star-Advertiser.
  • The decline extends a four-day losing streak and erases the stock’s post-IPO gains amid broader tech market weakness and investor concerns over AI spending, analysts told The Guardian and CNBC.
  • The stock’s slide leaves IPO investors holding paper losses for the first time since the company’s record $86 billion offering, which had briefly pushed CEO Elon Musk’s net worth above $1 trillion.

Four-session decline marks first time stock falls below offering price

SpaceX shares fell below their $135 initial public offering price for the first time on Wednesday, the latest sign that the rocket and satellite company’s early investor enthusiasm has faded. The stock declined as much as 2.9 percent to $132.15 during the session before recovering to close just above the offering level, Bloomberg reported. The decline marks the fourth consecutive day of losses, CNBC said.

The $86 billion IPO, the largest ever, had made CEO Elon Musk the world’s first trillionaire and briefly pushed the company’s market capitalization above $2 trillion. However, the stock has since retreated amid a broader technology-sector selloff and growing doubts about the profitability of massive investments in artificial intelligence, The Guardian reported. Analysts cited by the newspaper pointed to concerns over debt-funded AI expansion and the potential for Federal Reserve rate hikes to pressure stretched tech valuations.

The slide also reflects the absence of a key support mechanism. MSI previously reported that S&P Dow Jones Indices declined to fast-track SpaceX shares into the S&P 500 index, a move that dimmed the forced-buying boost that passive funds typically provide large new listings. Without that automatic demand, the stock has been more vulnerable to shifts in active-fund sentiment.

SpaceX’s trajectory during its first month of trading has drawn comparisons to other high-profile IPOs that surged then slumped. The decline leaves investors who bought shares at the offering price holding paper losses, and the break below the $135 level raises questions about near-term price stability, market participants told The Guardian.