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SpaceX's Next Test: Can Share Prices Survive The Upcoming Multi-Billion Share Unlock?
Investors worry about spending and debt as the company expands into artificial intelligence and faces more share sales later this year.
- On Wednesday, SpaceX shares dipped below their $135 IPO price for the first time since listing, reversing gains from the stock that had skyrocketed more than 50% in its first days of trading last month.
- Underlying market volatility over the past month has prompted investors to rotate away from once-favored themes, depressing the weighted average return for this year's US IPOs to roughly 10%, data compiled by Bloomberg show.
- SpaceX shares slumped 2.97% Thursday, wiping out $903 billion from a closing high last month. At least 20% of shares will be released after second-quarter results in the coming months, with all lockups expiring in December.
- The company's fall from its post-listing peak poured cold water on the market for newly public companies, dragging a key gauge of this year's debuts down with it, according to Bloomberg News.
- Bankers remain optimistic that deals will flow after September's Labor Day holiday, while Anthropic PBC could go public as soon as October, potentially spurring a second-half surge in IPO activity.
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28 Articles
28 Articles
Down 45%, Is SpaceX Getting Close to Where It's a Buy?
SpaceX's IPO went from a rocket launch to a controlled crash in under a month, and the debate over where it actually bottoms out splits Wall Street analysts and valuation models in ways that should give any bargain hunter pause.
·Lakewood, United States
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Short sellers earn $8.7 billion: Why investors are betting against Elon Musk's SpaceX
Some investors are concerned about the company's heavy investment in artificial intelligence, much of which is being financed through debt. These concerns have added pressure on the stock in recent weeks.
·Noida, India
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Coverage Details
Total News Sources28
Leaning Left5Leaning Right7Center4Last UpdatedBias Distribution44% Right
Bias Distribution
- 44% of the sources lean Right
44% Right
L 31%
C 25%
R 44%
Factuality
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