The SpaceX IPO made history. Is the excitement still there?
SpaceX's recent IPO experienced an initial surge driven by investor excitement over its AI capabilities, but shares have since declined as market focus shifted back to its core aerospace business. The company's valuation remains sensitive to news regarding its Starlink operations and broader tech market volatility.
Why it matters
It highlights the trend of investors labeling non-AI companies as 'AI plays' to drive valuation, and the subsequent market correction when business realities set in.
By Kali Hays Technology reporter Published 43 minutes ago SpaceX investors have swung from celebration to apparent concern in its first month as a publicly traded company.
When shares in the firm, co-founded and led by Elon Musk, first became available for individuals to buy on the public stock market on 12 June, there was an investor frenzy .
Although the company had decided to price its shares at $135 each, the price immediately shot up to $150 that first day, climbing to $176, before closing at $160.95.
It solidified SpaceX as the largest initial public offering (IPO) of all time.
The following week, its shares went up even further, hitting an intraday high of $225, meaning it had surpassed Amazon and Microsoft in total market value.
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