Economic conditions & trends

SpaceX Rebounds as Tech Sell-Off Shakes Markets

Is SpaceX stock a post-IPO implosion waiting to happen or a high-growth rocket ship ready to push higher?

Published 1 hour ago

SpaceX Rebounds as Tech Sell-Off Shakes Markets

Story

Above: The SpaceX stock ticker is displayed on a smartphone screen on June 19. Image credit: Samuel Boivin/NurPhoto/Getty Images

The Spin

Narrative A

SpaceX looks like a post-IPO implosion waiting to happen. The fundamentals are difficult to reconcile with its valuation, and persistent losses make it resemble a story stock more than a durable business. Morningstar pegs fair value at $63, implying 59% downside, and data shows the largest IPOs typically attract huge drawdowns. The first earnings report could be damaging for holders.

BitMEX

Narrative B

SpaceX stock rebounded after its dip, and the selloff says more about broader tech jitters than any fundamental problem with the company. New compute deals show revenue accelerating and the balance sheet improving. Sharp selloffs followed by bounces are typically a setup for the stock to push higher.

Al Jazeera