SpaceX, the space exploration technology company founded by the world’s richest man Elon Musk, saw its stock price dip below its initial public offering (IPO) price after going public, putting market confidence in this much-anticipated listing to the test.
Spanning the fields of rockets and artificial intelligence, SpaceX’s shares surged after listing, sending its market value above $2 trillion (about RM8.15 trillion). However, the stock then became volatile, dropping as low as $132.15 (about RM538.43) on July 15 U.S. time, below its IPO price of $135 (about RM550). The stock finally closed at $135.27 (about RM551.14), representing a decline of nearly 16% since listing.
Matt Maley, chief market strategist at asset management firm Miller Tabak, noted that the decline is a psychological blow for SpaceX. “This reinforces the narrative that the stock’s rise was based on hype, speculation, and frenzy, rather than true fundamentals.”
Hal Holt, research director at financial and investment advisory firm Carnegie Investment Counsel, also pointed out that investors who bought shares amid the SpaceX IPO craze hoping to make a big profit may end up disappointed.
It is not uncommon for the stock price of newly listed companies to fall below their IPO price. Social media giant Meta and U.S. AI chipmaker Cerebras Systems, which went public this May, have both experienced similar situations.