Key facts
- SpaceX shares have fallen below their initial offering price of $135.
- The stock has experienced a 40% decline from its peak of around $225.
- Some analysts, like George Noble and Ed Elson, believe the stock is overvalued and could drop significantly.
- Other analysts, such as Keith Snyder, maintain negative ratings due to valuation concerns.
- Jay Ritter noted that post-IPO slides are not uncommon.
SpaceX shares have dropped below their initial public offering price of $135, a significant shift after a strong debut and a 40% decline from their peak of around $225. This downturn is testing investor confidence, with some analysts reiterating bearish views on the stock's valuation.
George Noble, a hedge fund founder, predicted the price could "completely crash" and be cut in half over the year, suggesting a fair price target of $30. Jay Ritter, an expert on IPOs, stated he was not surprised by the post-IPO slide. CFRA analyst Keith Snyder maintained a negative stance, citing valuation concerns and stating that actual growth is needed to change his mind.
Ed Elson, a day trader, also expressed concerns about the stock being highly overvalued and predicted it would halve in value within a year. He highlighted that many bullish analysts come from banks that underwrote the IPO, potentially creating a conflict of interest. Elson noted that investors who bought post-IPO are now underwater, aligning with research suggesting IPOs recommended by underwriting banks tend to underperform.