SpaceX shares surged after its historic IPO but have since dropped by about 18% in the first trading month. The shift reflects investor concerns as the focus on AI fades and the company's core rocket and satellite business comes under scrutiny.
On June 12, SpaceX shares became available for public purchase, starting at $135.
Investor enthusiasm drove the price up to $150 by the end of the first day, closing at $160.95.
The stock continued to rise, hitting an all-time high of $225 amidst the excitement fueled by its AI narrative.
As focus shifted back to SpaceX's traditional operations, concerns about its revenue model led to price declines.
By the end of its first month, SpaceX shares were trading at around $145, down 18% from the opening week high.
Specific factors included a downturn in tech stocks and a notable drop following Starlink's pricing changes.
Analysts highlighted the initial success was driven by SpaceX's perceived AI potential, notably after acquiring Musk's AI firm xAI.
However, as the core business of rocket launches and satellite communications regained prominence, investors grew cautious.
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SpaceX shares surged after its historic IPO but have since dropped by about 18% in the first trading month. The shift reflects investor concerns as the focus on AI fades and the company's core rocket and satellite business comes under scrutiny.