Key highlights:
- SpaceX stock closed at $148, below its $150 IPO price for the second straight trading day
- The decline came just one day after the company joined the Nasdaq-100 Index
- Wall Street remains overwhelmingly bullish, with Morgan Stanley setting a $300 price target
SpaceX shares continued their post-IPO decline on Wednesday, closing at $148, below the company’s debut trading price of $150 for a second consecutive session.
The price drop comes despite what would normally be viewed as a major bullish catalyst. Earlier this week, the aerospace giant was added to the Nasdaq-100 Index, forcing index funds and exchange-traded funds tracking the benchmark to purchase shares.
Instead of sparking a fresh rally, however, the inclusion has coincided with a two-day selloff that has pushed the stock further away from its post-IPO highs.
Nasdaq-100 inclusion fails to ignite buying momentum
SpaceX officially joined the Nasdaq-100 on Tuesday, less than a month after making its public market debut on June 12.
The unusually fast inclusion was made possible by revised Nasdaq rules that allow newly listed companies to enter the benchmark sooner than in previous years.
Typically, joining the Nasdaq-100 creates a wave of mandatory buying from passive investment products that track the index. These purchases can often provide short-term support for newly added stocks.
In SpaceX’s case, investors appear more focused on valuation concerns after the stock’s explosive run following its debut.
Shares surged to a closing high of $201.80 on June 16, less than a week after listing, before giving back a substantial portion of those gains.
Record-breaking IPO faces reality check
SpaceX entered public markets through one of the largest IPOs in history.
The company raised approximately $85.7 billion, including shares sold through the underwriters’ overallotment option. The offering initially priced 555.6 million shares at $135 each, generating enormous investor demand.
The stock opened at $150 on its first day of trading and quickly became one of the market’s most actively discussed growth stories.
However, the recent pullback suggests investors are reassessing the company’s near-term valuation despite its strong long-term growth prospects.
Analysts remain overwhelmingly bullish
While the stock has struggled, Wall Street analysts remain largely optimistic.
Morgan Stanley recently initiated coverage with an Overweight rating and a $300 price target, implying more than 100% upside from current levels. The firm highlighted SpaceX’s leadership in reusable launch technology, Starlink’s expanding satellite internet business, and the company’s emerging artificial intelligence initiatives.
Analysts argued that investors may be underestimating the value of Starlink, future AI services, and potential orbital computing infrastructure.
However, not everyone is convinced. Firms such as MoffettNathanson and CFRA have taken a more cautious stance, citing valuation concerns and execution risks.
Can SpaceX regain momentum?
Despite the recent decline, SpaceX remains one of the most closely watched growth stocks on the market.
Investors will likely focus on several key catalysts in the coming months, including Starlink subscriber growth, Starship development milestones, defense contracts, and progress on the company’s AI initiatives.
As it stands, the stock’s drop below its IPO price highlights a growing disconnect between bullish analyst projections and current market sentiment.
Whether the latest pullback represents a buying opportunity or the start of a longer consolidation phase remains one of the biggest questions facing investors.
Source:: SpaceX Stock Closes Below Opening Price for Second Straight Day Despite Nasdaq-100 Inclusion