SpaceX Falls 20% Below IPO Price, Erasing $1.2 Trillion Value - Yahoo Finance

What the report says

Bloomberg, in a report published by Yahoo Finance, said SpaceX shares have dropped 20% below their initial public offering price, wiping out more than $1.2 trillion in market value from a June 16 peak. The stock was down 5% at $107.80 at 9:36 a.m. in New York on Tuesday, July 28, 2026, extending a slide from highs reached shortly after the company’s debut last month.

The report attributed the decline to a broader pullback from higher-risk technology names, with investors reassessing elevated artificial intelligence valuations and the spending behind AI-related demand. SpaceX, formally Space Exploration Technologies Corp., is described as a rocket, satellite and artificial intelligence company led by Elon Musk.

Investors are also focused on a staggered lock-up schedule that could increase selling pressure. Bloomberg reported that as many as 911.5 million shares may become tradable on Aug. 6, while the publicly available float could rise from about 639 million shares now to 5.33 billion by year-end, according to the IPO prospectus. Short sellers have targeted the stock, with S3 Partners data cited in the article showing roughly 30% of currently tradable shares sold short and nearly $8 billion in paper gains.

The selloff comes despite a largely successful Starship test on Friday, including deployment of upgraded Starlink satellites and a mostly intact return to Earth. Bloomberg noted that Starship remains important to Musk’s plans for Starlink expansion, lunar and deep-space missions, and potential space-based data centers, but its development has included explosions, malfunctions and delays.