SpaceX Shares Swing After First Post-IPO Drop Amid Valuation Debate

SpaceX shares moved between gains and losses in premarket trading on Thursday after recording their first decline since the company’s market debut earlier this month.

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The stock was up about 0.3% at 4:22 a.m. in New York after tumbling nearly 5% in the previous session. Despite the pullback, shares of Space Exploration Technologies Corp. remained more than 40% above their initial public offering price of $135, capping a strong first week as a listed company.

The fluctuations come as investors assess whether the company’s premium valuation can be supported by future revenue growth.

Investors Assess Long-Term Growth Prospects

According to Bloomberg, Michael Monaghan, partner and portfolio manager at Founder Funds in Dallas, said the company’s long-term outlook had encouraged investors to remain invested, though delivering on ambitious revenue projections would be challenging.

“We got very comfortable owning this stock because we could see $200 billion of revenue in 2030,” Monaghan told Bloomberg. “But literally and figuratively you need a rocket to go get those revenues.”

SpaceX, which operates across launch services, satellite communications and artificial intelligence-related technologies, has drawn strong investor interest since its listing. However, the absence of a clearly defined path to achieving aggressive revenue targets has added to concerns over valuation.

Nasdaq 100 Inclusion Could Support Shares

The stock may receive additional support from passive investment flows. Following changes to listing rules by Nasdaq Inc., newly listed large-cap companies can qualify for faster inclusion in the Nasdaq 100 index.

SpaceX is expected to become eligible for entry into the benchmark after completing 15 trading sessions. Inclusion in the index could lead to fresh buying from exchange-traded funds and other funds tracking the index.

Options Activity Signals Cautious Sentiment

Trading data showed a rise in hedging activity among options investors. The ratio of put options to call options was almost balanced on Wednesday, indicating increased demand for protection against further declines compared with the previous day when options trading in the stock began.

More than 1.4 million SpaceX options contracts changed hands during the session, according to Bloomberg. Although volumes were 24% lower than Tuesday, SpaceX emerged as the third most actively traded security in the U.S. options market, behind Tesla and Nvidia.

The stock’s sharp rise since listing and the recent increase in volatility suggest that investors are closely tracking both the company’s growth prospects and broader market sentiment as trading activity stabilises after its blockbuster debut.