SpaceX Loses Nearly $600 Billion In Value After Three-Day Slide

SpaceX shares fell 16% on Monday, extending losses for a third straight session and erasing close to $600 billion in market capitalization, according to Bloomberg. The decline comes weeks after the aerospace and technology company emerged as one of the most closely watched listings on Wall Street.

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The stock had climbed to a post-listing high of $225 and briefly surpassed Amazon and Microsoft in market value. However, the recent correction has reversed part of those gains, with shares trading at $154.60 after Monday’s selloff.

Debt Offering Weighs On Sentiment

According to Bloomberg, investor sentiment weakened after SpaceX entered the bond market for the first time. The company is seeking to raise at least $20 billion through an investment-grade debt offering to fund the expansion of its artificial intelligence business. SpaceX has not disclosed the final size of the proposed issue.

Market participants have also pointed to changing supply-demand dynamics after the stock’s initial surge. Michael O’Rourke, Chief Market Strategist at JonesTrading, told Bloomberg that many investors who wanted exposure to the company had likely accumulated shares soon after listing, allowing selling pressure to gain momentum.

Limited Float Keeps Retail Interest Alive

Despite the decline, retail investors have continued to accumulate the stock. Only about 4.2% of SpaceX’s outstanding shares are currently available for trading because existing shareholders remain subject to lock-up restrictions.

According to CNBC-TV18, citing Vanda Research data, individual investors purchased a net $405 million worth of SpaceX shares during the first five trading sessions after the company’s debut.

The amount exceeded the combined retail inflows into the seven companies that make up the “Magnificent Seven” technology group over the same period. Retail investors also remained net buyers during Monday’s decline, although buying activity was lower than in earlier sessions.

Stock Remains Above IPO Price

The recent correction follows a strong start after the company’s Nasdaq listing. SpaceX had rapidly become one of the biggest companies by market capitalization and attracted substantial interest from both institutional and retail investors.

Following Monday’s fall, the stock was trading roughly 15% above its IPO price of $135, according to Bloomberg. However, it remained about 31% below the post-listing peak reached earlier.

The recent volatility highlights the challenges faced by newly listed high-growth companies, particularly when valuations rise sharply in the early stages of trading. Investors are now closely watching the company’s financing plans and execution of its artificial intelligence initiatives as trading activity stabilises.