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SpaceX Shares Drop Below IPO Price as Investor Sentiment Wanes
SpaceX shares slipped below the $135 initial public offering (IPO) price on Thursday, ending a four‑day slide that left the stock 40 % down from the $225 high it hit in the first week after the record‑setting debut on June 12, 2026.
At 2:30 p.m. Eastern Time, the ticker traded at roughly $133, a level just shy of the price that investors paid to go public. The dip follows a period of intense volatility that is common after a high‑profile IPO, but it signals a shift from the initial hype to a more sober assessment of SpaceX’s financial prospects.
"This type of reversal tends to happen," said David Brown, a finance professor at the University of Arizona, to ABC News. "Uncertainty about the company’s ability to generate sustained profits may be contributing to the sell‑off."
SpaceX’s 2025 results illustrate that uncertainty. The company posted $18.7 billion in revenue, a 33 % increase from 2024, with nearly a quarter of that coming from its Starlink satellite‑internet service. Yet the firm recorded a net loss of $4.9 billion, according to its regulatory filings.
The IPO raised $75 billion, valuing SpaceX at $1.77 trillion and making it the largest IPO in history. The offering briefly elevated Elon Musk to the status of the world’s first trillionaire, but his net worth has since fallen to roughly $850 billion as the stock price slid.
SpaceX’s market performance has been closely tied to its launch calendar. Thursday’s 13th Starship test flight was scrubbed after engine problems were detected during the final launch‑pad countdown, aborting the mission minutes before liftoff. The cancellation added to investor concerns about the company’s launch reliability.
The company’s operations are organized into three segments: Space, which conducts orbital launches; Connectivity, which runs Starlink; and Artificial Intelligence, which manages its xAI subsidiary. SpaceX merged with xAI in February 2026, adding an AI chatbot that competes with OpenAI’s ChatGPT.
"What drove the price so high? History has proven this happens when there's a lot of publicity around a high‑profile company coming to market for the first time," said Dominic Pappalardo, chief multi‑asset strategist at Morningstar Wealth, to ABC News.
SpaceX has not yet responded to ABC News’ request for comment.
The decline carries implications for investors and the broader market. The company’s valuation has fallen from its peak, and the drop below the IPO price may influence future capital‑raising plans. Analysts note that continued losses and the technical challenges of the Starship program could weigh on long‑term investor confidence.
Starlink remains a major revenue driver, serving more than 12 million subscribers worldwide and accounting for a significant portion of the company’s earnings. The launch fleet, which includes the Falcon 9 and Falcon Heavy, continues to provide services for government and commercial customers.
At the close of the latest trading session, SpaceX’s market capitalization sits below the $1.5 trillion range it briefly approached after the IPO. The company’s future performance will likely hinge on the resolution of Starship’s technical issues, the profitability of its satellite‑internet operations, and the broader economic environment for space‑related investments.
The next few weeks will be critical as SpaceX prepares for the next Starship test flight and investors reassess the company’s financial trajectory. Leadership has not issued a statement regarding the stock’s recent decline.
In summary, SpaceX’s shares have slipped below the IPO price, reflecting a cooling of the initial enthusiasm that followed the company’s historic market debut. The decline follows a series of technical setbacks in the Starship program and highlights the challenges of turning a high‑growth, high‑risk aerospace business into a profitable enterprise.
At 2:30 p.m. Eastern Time, the ticker traded at roughly $133, a level just shy of the price that investors paid to go public. The dip follows a period of intense volatility that is common after a high‑profile IPO, but it signals a shift from the initial hype to a more sober assessment of SpaceX’s financial prospects.
"This type of reversal tends to happen," said David Brown, a finance professor at the University of Arizona, to ABC News. "Uncertainty about the company’s ability to generate sustained profits may be contributing to the sell‑off."
SpaceX’s 2025 results illustrate that uncertainty. The company posted $18.7 billion in revenue, a 33 % increase from 2024, with nearly a quarter of that coming from its Starlink satellite‑internet service. Yet the firm recorded a net loss of $4.9 billion, according to its regulatory filings.
The IPO raised $75 billion, valuing SpaceX at $1.77 trillion and making it the largest IPO in history. The offering briefly elevated Elon Musk to the status of the world’s first trillionaire, but his net worth has since fallen to roughly $850 billion as the stock price slid.
SpaceX’s market performance has been closely tied to its launch calendar. Thursday’s 13th Starship test flight was scrubbed after engine problems were detected during the final launch‑pad countdown, aborting the mission minutes before liftoff. The cancellation added to investor concerns about the company’s launch reliability.
The company’s operations are organized into three segments: Space, which conducts orbital launches; Connectivity, which runs Starlink; and Artificial Intelligence, which manages its xAI subsidiary. SpaceX merged with xAI in February 2026, adding an AI chatbot that competes with OpenAI’s ChatGPT.
"What drove the price so high? History has proven this happens when there's a lot of publicity around a high‑profile company coming to market for the first time," said Dominic Pappalardo, chief multi‑asset strategist at Morningstar Wealth, to ABC News.
SpaceX has not yet responded to ABC News’ request for comment.
The decline carries implications for investors and the broader market. The company’s valuation has fallen from its peak, and the drop below the IPO price may influence future capital‑raising plans. Analysts note that continued losses and the technical challenges of the Starship program could weigh on long‑term investor confidence.
Starlink remains a major revenue driver, serving more than 12 million subscribers worldwide and accounting for a significant portion of the company’s earnings. The launch fleet, which includes the Falcon 9 and Falcon Heavy, continues to provide services for government and commercial customers.
At the close of the latest trading session, SpaceX’s market capitalization sits below the $1.5 trillion range it briefly approached after the IPO. The company’s future performance will likely hinge on the resolution of Starship’s technical issues, the profitability of its satellite‑internet operations, and the broader economic environment for space‑related investments.
The next few weeks will be critical as SpaceX prepares for the next Starship test flight and investors reassess the company’s financial trajectory. Leadership has not issued a statement regarding the stock’s recent decline.
In summary, SpaceX’s shares have slipped below the IPO price, reflecting a cooling of the initial enthusiasm that followed the company’s historic market debut. The decline follows a series of technical setbacks in the Starship program and highlights the challenges of turning a high‑growth, high‑risk aerospace business into a profitable enterprise.
