SpaceX stock tumbled to an all-time low of $145.20 during midday trading on Wednesday, closing below its initial public offering price of $150 for the second consecutive day.
The decline came despite the company's recent addition to the Nasdaq-100 index, which failed to lift the stock as the inclusion had already been priced in by the market, according to strategists.
Market Performance and Analyst Views
The aerospace and defense contractor closed at $148 on Wednesday, following a two-day slide that pushed it below the $150 debut price set during its June 12 IPO.
SpaceX originally raised $85.7 billion after underwriters exercised the greenshoe overallotment, offering 555.6 million shares at $135 each.
The stock peaked at a closing high of $201.80 on June 16.
Wall Street coverage has been largely positive, with 12 of 17 underwriters issuing buy ratings.
Bernstein, RBC, and UBS have set price targets ranging from $210 to $239 per share.
Morgan Stanley analyst Adam Jonas initiated coverage with an overweight rating and a $300 target, highlighting SpaceX's potential to integrate launch capabilities with satellite networks and artificial intelligence.
"SpaceX could transform energy into intelligence — data centers using solar power — with near-monopoly launch economics, the world's largest LEO network, and a fast-scaling AI infrastructure business," Jonas said.
However, not all analysts are bullish. MoffettNathanson initiated coverage with a neutral rating, while CFRA recommended that investors sell their shares.
The market struggles come as rival Blue Origin, backed by Jeff Bezos, is reportedly securing $10 billion in its first public funding round at a $130 billion valuation to strengthen its capital position.
