SpaceX shares have retreated to within touching distance of their initial public offering price, erasing hundreds of billions in market value as institutional investors warn of unsustainable speculative behavior.
The aerospace giant’s stock, which recently joined the Nasdaq 100 Index, has faced intense selling pressure, with one prominent money manager characterizing the current price action as reminiscent of a "meme stock" rather than a fundamental valuation.
The sharp repricing follows a volatile period for the company, which saw its shares plunge 23% in early trading sessions, wiping out approximately $600 billion from its market capitalization.
The sharp repricing follows a volatile period for the company, which saw its shares plunge 23% in early trading sessions, wiping out approximately $600 billion from its market capitalization.
The decline was triggered by the company’s announcement that it would issue bonds for the first time, a move that spooked investors concerned about dilution and capital structure changes.
Since then, the stock has continued to slide, falling below the closing price of its IPO and marking a significant reversal for the once-untouchable tech darling.
Hedge funds are now actively positioning against the stock.