SPACEX SHARES FALL BELOW IPO PRICE AFTER MONTH-LONG SURGE

SpaceX shares declined 1.5% to $134 on Wednesday, dropping below the $135 initial public offering price for the first time since the company completed its listing over a month ago. The decline marks a reversal from the post-IPO surge that briefly elevated SpaceX's market valuation above $2.6 trillion, surpassing Microsoft and Amazon. Investors who purchased shares at the IPO price now hold paper losses. The company's valuation has fallen to approximately $1.75 trillion as of Wednesday afternoon.

The retreat follows SpaceX's decision to raise $25 billion through bond sales last month to fund artificial intelligence infrastructure development. Market analysts attributed the share price decline to profit-taking, valuation reassessment and the unwinding of bullish positions built up ahead of one of recent years' most anticipated listings. Concerns over potential Federal Reserve rate rises and their impact on technology valuations also weighed on investor sentiment. SpaceX reported a loss of $4.9 billion last year, and many of the company's stated ambitions remain unproven.

Market watchers noted the stock's addition to major indices including the Nasdaq 100 failed to reverse the decline. One analyst stated the retreat reflected "a combination of profit-taking, valuation reassessment and the unwinding of extremely bullish positioning". Another noted that whilst a modest drop below IPO price is not uncommon during market stress, SpaceX's heavy weighting in investor portfolios and broader market psychology meant the movement remained significant.