Why SpaceX Stock Plummeted This Week
Yahoo Finance ·
SpaceX ( SPCX +0.13% ) stock suffered a huge pullback in its second full week of trading following its initial public offering on June 12. The company's share price declined 20.2% in a week of trading that saw the S&P 500 decline roughly 2%, and the Nasdaq Composite fall 4.6%. In addition to bearish momentum for the broader market, SpaceX's valuation contracted in conjunction with fading post-IPO excitement. The company's share price closed out the week down roughly 4.8% from the $160.95 per share price it had on the day of its public debut, and the stock is now down 24% from its high. By most measures, SpaceX's IPO was an enormous success. The company's share price surged above its initial listing price of $135 per share, and it still trades up 13.5% compared to that level. The tech specialist had the biggest IPO in history, and its first stock sale allowed the company to raise $85.7 billion. On the other hand, early excitement surrounding the company's public debut clearly faded this week. Bearish momentum for the broader market tied to concerns about artificial intelligence (AI) chip stocks likely weighed on SpaceX because the company is making AI processing services a focal point of its growth strategy, and investors hoping to score more quick gains with the stock moved out of positions as positive momentum began to fade.
DYAX Investor Sentiment
Bullish (Long) 57% · Bearish (Short) 43%
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