SpaceX Falls 17% After Nasdaq-100 Entry as Valuation and Share Unlock Risks Bite
Updated
Updated · The Motley Fool · Jul 17
SpaceX Falls 17% After Nasdaq-100 Entry as Valuation and Share Unlock Risks Bite
3 articles · Updated · The Motley Fool · Jul 17
Summary
SpaceX shares have slid 17% since joining the Nasdaq-100 on July 7, dropping below their $135 IPO price despite index-tracking ETF buying tied to the inclusion.
At its June 16 peak, SpaceX traded at 142 times 2025 revenue; even after the pullback, its $1.63 trillion market value is about 87 times last year's sales.
Losses in its space and AI units, debt-funded expansion, and dilutive deals including the all-stock Cursor acquisition have undercut enthusiasm that followed the record IPO.
A late-July or early-August lockup event could add pressure: 20% of employee and pre-IPO shares will unlock after second-quarter earnings, with another 10% released if the stock meets a $175.50 trigger.
The retreat follows earlier pressure from a scrubbed Starship test flight, while bulls still point to forecasts for revenue to jump from $18.5 billion in 2025 to $141.6 billion by 2028.
Musk is a trillionaire, but his stock is sinking. Is SpaceX's AI dream a bubble about to burst?
Did Nasdaq bend its rules to land the SpaceX IPO, putting passive investors' funds at risk?
Can SpaceX's profitable satellite business truly fund its massive, cash-burning ambitions in space and AI?
SpaceX’s Post-IPO Slide: Market Volatility, $1.8 Trillion Valuation, and the High-Stakes Growth Gamble
Overview
SpaceX's stock performance after its IPO in July 2026 has entered a challenging phase, marked by a recent slide that is testing investor confidence. This downturn followed the initial public offering and has led to a period of market re-evaluation. Despite the recent dip, SpaceX still maintains a substantial market capitalization of $1.8 trillion, placing it firmly in the mega-cap category. The current market dynamics are prompting investors to take a closer look at SpaceX's valuation and long-term prospects, as the company navigates this volatile period in the public market.