TLDR
- SpaceX stock fell 16.4% on Monday, closing at $154.60 — wiping roughly $600 billion in market cap over three sessions
- The drop followed news of SpaceX’s first investment-grade bond offering to repay its bridge loan
- KeyBanc initiated coverage with a “Sector Weight” rating, citing high valuation with no price target
- SpaceX trades at ~29x its 2027 revenue forecast; the company is unprofitable despite holding $100.8 billion in cash
- Only 639 million of SpaceX’s 13+ billion outstanding shares are currently available to trade, with insider lockups releasing in 15 stages over a year
SpaceX stock has had a rough few days. After surging as much as 67% in its first three trading sessions post-IPO — hitting a peak of $225.64 on June 16 — the stock has shed most of those gains fast.
Space Exploration Technologies Corp., SPCX
On Monday, SPCX closed at $154.60, down 16.4% for the day. That’s just 3% above its IPO opening price of $150 on June 12. The three-session slide wiped roughly $600 billion off its market cap, which had briefly topped $2.6 trillion last week.
According to Dow Jones Market Data, Monday’s $400.8 billion single-day market cap loss was the second largest one-day market value loss for any U.S. company on record.
The immediate trigger was SpaceX’s announcement that it would issue its first investment-grade dollar bonds to repay outstanding borrowings under its bridge loan facility. The company noted it held approximately $100.8 billion in cash and cash equivalents as of June 19.
That’s a lot of cash. But markets weren’t impressed.
KeyBanc Initiates With Neutral Stance
KeyBanc analyst Michael Leshock kicked off coverage of SPCX on Monday with a “Sector Weight” rating and no price target. The team said SpaceX’s disruptive potential is already reflected in the current valuation.
“SpaceX possesses disruptive growth avenues, though we believe this is reflected in current valuation and risk/reward appears balanced,” Leshock wrote.
Leshock pointed to SpaceX’s price-to-sales ratio of around 29 times his 2027 revenue forecast — a premium to nearly all its peers across space, telecoms, and AI.
He also flagged that Starship milestones will be the key driver for SpaceX’s Connectivity segment, which includes Starlink and Starshield, as well as its future orbital data center ambitions.
SpaceX debuted with a price-to-sales ratio of roughly 100 at IPO, making it one of the most expensive public companies in the world despite being unprofitable.
Thin Float and Staggered Lockups
Part of what makes SPCX unusual is how little of it is actually tradeable right now. Only 639 million of the company’s more than 13 billion outstanding shares are currently available to trade.
Rather than a standard 180-day single lockup expiration, SpaceX is releasing insider stock in 15 stages over more than a year. That structure is expected to keep downward pressure on the stock as the float gradually grows.
SpaceX raised more than $85 billion in its IPO and skipped the traditional price discovery process with banks, choosing instead to set a direct $135/share price.
The company has cited an addressable market of more than $28 trillion — roughly equal to U.S. GDP — and has framed its long-term vision around goals including colonizing Mars and launching orbital data centers.
SPCX ended Monday with a closing market cap of $2.04 trillion. The S&P 500 was down 0.4% on the same day.
🚨 Our JUNE Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for June, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
