Key facts
- SpaceX shares have fallen below their IPO trading debut price.
- SpaceX's market capitalization has dropped below $2 trillion.
- The Nasdaq 100 is projected to lose over $1 trillion in market value.
- Major technology stocks and chipmakers are experiencing significant declines.
- SpaceX's market value has decreased by over $600 billion in three sessions.
SpaceX shares have experienced a significant selloff, falling below their IPO trading debut price and erasing hundreds of billions in market value. The stock is down for a fourth consecutive day, extending a slump that has wiped out over $600 billion since its Tuesday peak. This decline follows a period of rapid gains that briefly pushed SpaceX's market capitalization ahead of Amazon and Microsoft.
The broader technology sector is also under pressure, with the Nasdaq 100 index futures indicating a substantial drop at the market open. The index is on pace to shed over $1 trillion in market value, with major technology stocks and chipmakers like Intel, Advanced Micro Devices, Micron Technology, SanDisk, and Western Digital experiencing significant declines.
The recent downturn in SpaceX shares was partly triggered by its $60 billion all-stock deal for AI coding startup Cursor, which raised concerns among analysts about dilution. Morningstar analysts lowered their fair value estimate for SpaceX, citing the sizable dilution. However, some analysts, like Oppenheimer's Timothy Horan, remain optimistic, believing the acquisition could boost SpaceX's shares.