SpaceX Stock Slides Back to $135 IPO Price After Post-IPO Surge

SpaceX shares briefly touched their $135 IPO price on Tuesday, erasing a 67% rally that pushed the stock above $225 and the company’s market value past $3 trillion in the days after its June listing. The retreat marks one of the fastest round-trips in recent IPO history.

Tony Sycamore, a market analyst at IG, said the reversal reflects a mix of fading post-IPO momentum, a broader selloff in technology stocks, and uncertainty about insider selling ahead of the company’s first earnings report. “The hype that drove the stock from $135 to $225 in a week was always going to be hard to sustain,” Sycamore said. “Now you have a rotation out of tech names and questions about how many early investors want to cash out.”

SpaceX raised a record $85.7 billion in its initial public offering, pricing at $135 a share and giving the company a valuation of $1.77 trillion. The stock surged to an intraday high of $225.48 on its second day of trading, briefly making it more valuable than Microsoft and Amazon. Since then, the shares have fallen in eight of the past ten sessions, wiping out roughly $1.2 trillion in market capitalization.

Sycamore pointed to valuation concerns as a separate headwind. SpaceX trades at an estimated 90 to 110 times forward revenue, a multiple that puts it in the same territory as high-growth software companies but far above the average for industrial or aerospace names. “There is no earnings history to anchor the valuation, so the stock is being priced on narrative and future expectations,” he said. “That leaves it vulnerable when the narrative shifts.”

The broader technology sector has come under pressure in July as investors rotate into cyclical and value stocks. The Nasdaq 100 fell 3.2% over the same period, adding to the selling pressure on SpaceX shares. Sycamore said the stock’s thin float and high retail ownership may have amplified the move.

SpaceX’s first quarterly earnings report as a public company is due in late August. On the call, analysts will watch for updates on Starlink subscriber growth, Starship launch timelines, and government contracts. A miss on any of those fronts could accelerate the selloff, though a strong print might attract dip buyers, Sycamore said. For now, the stock’s path hinges on whether the post-IPO euphoria has fully unwound.

Microsoft, which temporarily lost its spot as the second-largest U.S. company by market cap during SpaceX’s surge, is now worth about $3.2 trillion. The comparison underscores how quickly the space company’s valuation has realigned. Read more about MSFT stock.