Key Takeaways
- SpaceX (SPCX) stock declined over 6% on Thursday, marking its second consecutive day of losses following a three-day rally
- Despite the recent downturn, shares remain more than 30% higher than the $135 initial public offering price
- Retail traders had aggressively accumulated SPCX shares following the debut, with aggregate net purchases exceeding $300 million across three trading days
- Financial institutions are structuring a bond issuance worth no less than $20 billion, marking SpaceX’s inaugural investment-grade US dollar debt offering
- Other space sector equities experienced similar declines, including AST SpaceMobile which fell approximately 7%
SpaceX (SPCX) stock finished Thursday’s regular session down more than 3%, before deepening its losses in extended trading to exceed 6%, reaching $178.50. The shares had rocketed over 19% during their inaugural trading session following last Friday’s public market debut, launching at $150 compared to the $135 offering price.
Space Exploration Technologies Corp., SPCX
Based on the current trading level, SpaceX commands a market capitalization of approximately $2.52 trillion. Any continued downward pressure could wipe out more than $150 billion in shareholder value.
The retreat follows three consecutive trading sessions dominated by retail investor accumulation since the company’s stock market entrance. According to Vanda Research, SPCX claimed the top position as the most heavily purchased equity by individual investors for three straight days.
“Retail investors have bought roughly the same amount of SPCX over the last 3 sessions as they have bought NVDA, GOOGL, AMZN, MSFT, META, QQQ and SPY combined,” Vanda said.
That comparison is truly remarkable.
Retail participation, however, significantly diminished on Thursday, which seemingly pressured the shares even as broader market indices posted gains for the day.
Investors Lock in Profits Following Exceptional Performance
IPOX Schuster analyst Kat Liu characterized the retracement as a natural occurrence considering the offering’s size.
“Given the magnitude of the IPO and the strong initial performance, some degree of profit-taking is not surprising,” Liu said.
She added: “This has been a particularly eventful and shortened trading week for the largest IPO in history.”
The share price decline interrupted a three-day advance that had momentarily elevated SpaceX into the ranks of the world’s five most valuable corporations, crossing the $2 trillion valuation threshold.
Additional space industry stocks also experienced weakness on Thursday. Rocket Lab and Planet Labs each shed approximately 3%, while AST SpaceMobile tumbled roughly 7% and Intuitive Machines decreased around 3%.
Major Bond Offering and Cursor Deal Under Spotlight
Beyond daily price movements, two significant corporate developments are capturing market attention.
Bloomberg disclosed Thursday that investment bankers are organizing investor presentations as early as the coming week for a prospective bond sale anticipated to reach at least $20 billion. This transaction would represent SpaceX’s debut investment-grade US dollar bond issuance and is designed to refinance a bridge financing facility maturing in 2027.
Earlier this week, SpaceX announced its intention to purchase Anysphere — the company responsible for AI coding platform Cursor — for $60 billion in equity, a strategic maneuver designed to strengthen its position in the enterprise artificial intelligence software sector.
Vanda Research observed that SPCX is beginning to exhibit trading characteristics similar to a “Magnificent Seven” stock, referencing its elevated retail participation and price volatility patterns.
With a comparatively limited public float and an elevated valuation multiple, market strategists and fund managers had previously anticipated early price instability. Thursday’s trading activity validated those expectations.
SPCX settled at $185.00 during Wednesday’s close before the after-hours decline brought it to $178.50.
