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.
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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.
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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.
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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.
