SpaceX's stock falls below IPO price for 1st time
What's the story
SpaceX's shares have fallen below their initial public offering (IPO) price for the first time. The decline comes just over a month after the company made history with the largest IPO ever, making CEO Elon Musk the world's first trillionaire. The company's stock hit a record low of $132.15 on Wednesday, falling below its $135 per share IPO price and well below its all-time high of $225.64, propelling the company's market valuation briefly above Microsoft and Amazon.
Market performance
Investors face paper losses
The decline in SpaceX's shares has left investors who bought at the IPO price with paper losses for the first time.
The drop also highlights how quickly Wall Street enthusiasm can fade, even for a company as big as SpaceX.
Despite raising around $85.7 billion and achieving a valuation of about $2.1 trillion on its first day of trading, the company's stock has been under pressure due to concerns over its profitability amid rising inflation rates.
Profit concerns
SpaceX's profitability issues
Despite the initial hype, SpaceX has been struggling with profitability. The company reported net losses of $4.9 billion last year, raising questions about its future prospects.
This financial performance has contributed to the recent decline in its stock price, which has fallen nearly 13% since being added to the NASDAQ 100 index.
Launch anticipation
Upcoming Starship test flight
SpaceX is set to test-launch its Starship rocket for the first time since going public. This will be the first Starship flight since a booster failure in May.
The company doesn't plan to recover the Starship booster or upper stage on this flight, which could further impact its stock price performance in the coming days.