After a strong debut, SpaceX's stock is now trading around $126, which is 7% lower than its IPO price of $135 and over 40% below its peak of $225.64. This decline follows changes by index providers, including Nasdaq and FTSE Russell, that aimed to facilitate quicker inclusion of companies like SpaceX into major indexes, which typically attract substantial passive investment.
Despite SpaceX's current valuation exceeding $1.6 trillion, the stock's downturn has led to concerns about the appetite for future mega IPOs, especially in light of a broader reevaluation of AI investments.
Michael Khouw from Tidal Financial Group noted that the situation dampens investor sentiment, while JJ Kinahan from Cboe Global Markets highlighted growing skepticism regarding the returns on AI spending. As the market awaits potential IPO announcements from OpenAI and Anthropic, the recent performance of SpaceX may influence investor confidence in upcoming offerings