SpaceX stock rally hits first slowdown after blockbuster IPO

SpaceX’s blockbuster post-IPO rally has shown its first signs of cooling, as shares of Elon Musk’s rocket company slipped following a historic debut on public markets last week.

The company, which raised a record $75 billion in its initial public offering on June 12, saw its stock fall nearly 5% by Wednesday’s close — marking its first down day since going public. Business Insider reported that the decline extended into Thursday, with shares dropping as much as 7% to $177.54, though they remain about 31% above the IPO price of $135.

First pullback after explosive debut

The move ends an early rally that briefly pushed SpaceX’s market capitalisation close to $3 trillion, placing it among the world’s most valuable companies and sparking comparisons with Big Tech giants like Amazon.

The stock had surged out of the gate, rising 19% on its first trading day amid strong demand from both retail investors and institutional buyers. The momentum cemented one of the most closely watched public debuts in recent years.

However, the latest dip suggests investors may be beginning to reassess the rapid gains following the initial excitement of the listing.

Expansion moves continue after listing

Despite the pullback, SpaceX has remained active following its market debut. The company recently announced a $60 billion all-stock deal for AI coding startup Cursor, exercising an option it had agreed to earlier this year.

Investors, including Pershing Square founder Bill Ackman, have said the structure of the deal limited dilution due to SpaceX’s elevated valuation after its IPO.

SpaceX has also absorbed Elon Musk’s AI startup xAI as part of its expanding portfolio, underscoring its push into artificial intelligence and next-generation computing infrastructure.

Valuation questions and long-term bets

Ahead of the IPO, analysts raised concerns about SpaceX’s valuation relative to its earnings. The company reported a $4.9 billion loss in 2025 on revenue of $18.7 billion, significantly below the scale of other multi-trillion-dollar tech companies such as Google and Amazon.

Still, SpaceX has outlined ambitious long-term projections, including a total addressable market of $28.5 trillion — roughly equivalent to global US GDP levels in 2024. Elon Musk has also suggested the company’s revenue could reach $1 trillion by 2030.

The company is increasingly betting on new growth areas, including AI-driven infrastructure and potential space-based data center networks, as it seeks to justify its long-term valuation narrative.

For now, however, the first signs of volatility suggest that even one of the most hyped IPOs in recent memory is not immune to market cooling after a record-breaking start.