[Reuters/Yonhap]
[Reuters/Yonhap]

Shares of SpaceX, the US space and AI company that drew widespread attention last month with the largest initial public offering in history, fell below their IPO price for the first time since the listing. After surging sharply in the days following its debut — briefly pushing the company's market capitalization to $2.6 trillion — sentiment has cooled rapidly as profit-taking and concerns over AI investment weigh on the stock.

SpaceX shares fell 1.5 percent during trading Wednesday to $134, dipping below the IPO price of $135 for the first time, Reuters reported. That marked the lowest level since the company listed on NASDAQ on June 12.

The mood had been starkly different in the early days of trading. SpaceX shares surged as high as $225, and the company's market capitalization briefly topped $2.6 trillion — overtaking Amazon and Microsoft to rank fourth by market cap globally.

The rapid run-up briefly earned founder and CEO Elon Musk the distinction of being the world's first "trillionaire," with his net worth surpassing $1 trillion.

Less than a month after the listing, however, the mood has shifted sharply. Markets attributed the reversal to a combination of profit-taking following the short-term surge, concerns about the Federal Reserve tightening further, and growing unease over debt-fueled expansion in AI investment.

"It's a combination of profit-taking, revaluation and the unwinding of extreme bullish positions," said Daniela Hasson, senior analyst at Capital.com.

Justus Parma, CEO of Fortuna Investment, a SpaceX backer, said the "elephant in the room" is that a significant number of shareholders want liquidity, which is putting downward pressure on the share price. "We will see more of this this year," he added.

Several major events in the coming weeks could determine where the stock heads next.

The 13th test flight of Starship, SpaceX's next-generation spacecraft, is scheduled for Thursday. A successful outcome is expected to benefit the company's long-term space ambitions, including plans to build a data center in lunar orbit and establish a base on the moon.

The company's first earnings release since its listing is also scheduled for the first week of next month. Following that disclosure, some early investors and employees will be released from lock-up restrictions, allowing them to sell their stakes — a prospect markets are watching closely as a potential source of additional selling pressure.

Some analysts view the current pullback as a normalization of the frenzied early trading rather than a fundamental deterioration. Should upcoming Starship test results, earnings, and the growth trajectory of SpaceX's AI and space businesses reassure investors, sentiment could recover — though the stock is expected to remain highly volatile in the near term, driven by major events as they unfold.


rainbow@heraldcorp.com