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?

JUN 24·Updated JUN 25

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 Facts

SpaceX shares briefly fell below their $150 debut trading price on Tuesday before closing nearly 1% higher, snapping a three-day skid during which the stock lost close to 24% of its value and erased more than $600 billion in market capitalization.
Global News
CNBC
The broader tech sell-off pulled the Nasdaq Composite down 2.2% on Tuesday, with Micron Technology slumping more than 13% and Nvidia falling over 4%. Wall Street is now pricing in roughly an 85-90% chance the Federal Reserve will raise interest rates at least once before year's end.
ABC News
CBC
Elon Musk's net worth fell to an estimated $957-$962 billion after the SpaceX sell-off, ending his status as the world's first and only trillionaire — a milestone he reached on June 12 when SpaceX debuted on the Nasdaq and his fortune peaked at around $1.1 trillion.
Forbes
Independent
SpaceX announced a senior unsecured bond offering and disclosed it held $100.8 billion in cash as of June 19. The company also secured a computing deal with AI startup Reflection, granting access to its Colossus infrastructure at a reported value of up to $6.3 billion.
Al Jazeera
Breitbart
SpaceX listed with a public float, the amount of shares publicly tradable, of about 5%, compared with roughly 80% typical for stocks on major indexes. Anthropic and OpenAI, both pursuing IPOs, are reported to be planning similarly low floats.
Business Insider
Axios
Brent crude also fell to $75.59 a barrel on Tuesday, its lowest level since the Iran war began, after U.S. Secretary of State Marco Rubio said no country could charge tolls for Strait of Hormuz shipping. WTI crude, the U.S. benchmark, fell to $71.95 a barrel, its lowest level since June 2.
CBC
Guardian

Sources Split

LEFT

CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

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