Key facts
- SpaceX stock has fallen over 25% in five sessions and is down 30% from its post-IPO peak.
- Short interest in SpaceX has increased to 13% of tradable shares.
- SpaceX expanded its bond sale to $25 billion.
- An Allianz executive warned the company's fundraising pace suggests markets may be entering "bubble territory."
- SpaceX stock was trading near $151, down 2% on the day.
- Rumors suggest SpaceX may be considering an acquisition of T-Mobile.
SpaceX's stock has experienced significant pressure since its initial public offering, declining over 25% in five trading sessions and trading approximately 30% below its post-IPO peak. This downturn has coincided with a notable increase in short interest, which has climbed to 13% of the company's publicly tradable shares, according to data from Ortex Technologies. The firm's co-founder, Peter Hillerberg, highlighted the rapid build-up of short positions for a company so early in its public trading life.
Adding to market concerns, SpaceX recently expanded its bond sale to $25 billion. Allianz Chief Investment Officer Ludovic Subran commented that such aggressive fundraising activity, particularly SpaceX's quick return to capital markets after its IPO, suggests that markets may be entering "bubble territory." He noted that the pace of fundraising indicates companies are capitalizing on elevated stock prices and favorable borrowing conditions.
The stock was trading down around 2% near $151. Recent market rumors also suggest that SpaceX might be considering an acquisition of T-Mobile, a move analysts at TD Cowen noted could be a strategic fit due to T-Mobile's existing partnership with Starlink, though this remains speculative.
Despite the bearish sentiment and market weakness affecting newly listed shares, SpaceX maintains a substantial market capitalization of $2.056 trillion. Analysts caution that short sellers face significant risks due to SpaceX's limited public float, which could potentially trigger a powerful short squeeze if the stock rallies. KeyBanc analysts have initiated coverage with a 'sector weight' rating.