SpaceX shares slide below IPO price as global tech rout deepens

SpaceX shares slipped below their $150 IPO debut price in premarket trading Tuesday after a 16% plunge Monday erased roughly $400 billion in value.bloomberg
The decline coincided with a global tech rout that sent South Korea’s Kospi down 10%, triggering a circuit breaker, while the Nasdaq Composite fell over 2%.cnbc
Chipmakers were hit hardest, with Micron ↘13.18%, Nvidia ↘4.13%, and ASML ↘7.82% all falling sharply amid rising rate fears and AI valuation concerns.moneycheck

SpaceX Stock Extends Decline as Global Tech Rout Deepens

SpaceX shares fell sharply in premarket trading on Tuesday, threatening to push the company’s market capitalization below $2 trillion for the first time since its record-breaking initial public offering less than two weeks ago. The stock traded near $148 before the opening bell, slipping below its June 12 debut price of $150, after closing Monday at $154.60 following a 16% single-day plunge that wiped roughly $400 billion from its market value.bloomberg

The selloff marked the fourth consecutive session of declines for the aerospace and AI company, which peaked at nearly $3 trillion in market capitalization on June 16. Over three trading days through Monday’s close, SpaceX shed more than $600 billion in value — a decline Bloomberg reported as the second-largest one-day loss ever suffered by any company.irishtimes

A Broader Tech Reckoning

SpaceX’s slide coincided with a sweeping global technology selloff on Tuesday. South Korea’s Kospi plunged 10%, triggering a circuit breaker halt, while the Nasdaq Composite fell more than 2% and the S&P 500 declined 1%. Chipmakers bore the brunt of the damage, with Micron Technology dropping more than 11%, Nvidia falling over 3%, and ASML losing nearly 5% in Europe.cnbc

The retreat reflected rising anxiety over stretched AI valuations and shifting interest rate expectations. Market pricing now points to 50 basis points in Federal Reserve rate increases by year-end — double what investors anticipated two weeks earlier.moneycheck

Bonds, Deals, and Post-IPO Volatility

The selling pressure intensified after SpaceX announced on Monday its inaugural offering of senior unsecured notes, seeking to raise approximately $20 billion to repay bridge loan borrowings from the IPO. The company disclosed roughly $100.8 billion in cash reserves. Separately, SpaceX signed a computing-power agreement with open-source AI startup Reflection AI worth up to $6.3 billion, granting the startup access to Nvidia GB300 chips at SpaceX’s Colossus 2 data center near Memphis, Tennessee, with payments of $150 million per month beginning July 1.techcrunch

The volatile trading underscores the fragility of SpaceX’s post-IPO valuation. The company debuted on Nasdaq on June 12 at $135 per share, raising $75 billion in the largest IPO in history. Shares peaked above $225 within days before reversing course. Tom Hulick, CEO of Strategy Asset Managers, told CNBC he does not view the selloff as catastrophic: “There’s too much liquidity out there, and the earnings momentum is very strong right now”.reuters