Updated
Updated · The Motley Fool · Jul 21
SpaceX Falls 36% to $129 as History Signals Another 13% to 20% Drop
Updated
Updated · The Motley Fool · Jul 21

SpaceX Falls 36% to $129 as History Signals Another 13% to 20% Drop

3 articles · Updated · The Motley Fool · Jul 21

Summary

  • $129 a share leaves SpaceX down 36% from its roughly $202 peak just days after its record $1.8 trillion U.S. IPO.
  • Historical data on the 10 largest U.S. IPOs suggest more weakness: the median stock falls 17% below its IPO price within a year and hits a 25% drawdown at some point.
  • Applied to SpaceX's $135 IPO price, that points to about $112 by June 2027 and a possible interim slide to roughly $101.
  • Valuation adds to the pressure: SpaceX trades at 88 times sales, about 40% richer than Palantir's 62 times sales, while its orbital AI data-center plan is not expected before 2028.

Insights

Hit by a rock-bottom ESG rating and launch delays, is SpaceX's grand vision fundamentally flawed?
With its AI division burning billions, should SpaceX split itself to save its profitable Starlink business?
Is Elon Musk's costly AI gamble a visionary bet or a trillion-dollar mistake?