SpaceX Stock Falls 8% as Post-IPO Rally Loses Steam, June 19

Shares of SPCX fell 8.46% to $175.95 on June 18, marking the first decline since the company’s IPO on June 12 at $135 per share. The drop ended a three-day winning streak that had pushed the stock up 50% above its offering price. Broader market weakness tied to Federal Reserve rate hike signals and concerns about SpaceX’s valuation drove the selloff.

Post-IPO Euphoria Fades Amid Market Headwinds

SpaceX shares closed Wednesday down 4.95% at $191.82 before falling further to $175.95 on Thursday, erasing $150 billion from the company’s market value. The Nasdaq Composite fell 1.34% on Wednesday as investors reacted to Federal Reserve signals of a possible rate hike in 2026. The Fed held rates unchanged at 3.5% to 3.75% but raised its year-end rate projection to 3.8% from 3.4%, signaling tighter monetary policy ahead.

Valuation Concerns Emerge From Analysts

Morningstar analysts warned before the IPO that SpaceX is significantly overvalued, citing technologies described as novel and untested. Swissquote analyst Ipek Ozkardeskaya called SpaceX the latest meme stock, saying investors were buying in expectation that others would push prices higher. Despite concerns, Oppenheimer analyst Timothy Horan set a $250 price target for year-end, up from $190, citing the Cursor AI acquisition as beneficial to both companies.

Cursor Deal Fails to Sustain Momentum

SpaceX announced an all-stock acquisition of AI coding startup Cursor valued at $60 billion on Tuesday. The deal would give SpaceX access to AI technology and engineering talent while Cursor gains computing power. However, the acquisition failed to sustain the stock’s rally, as investors questioned whether the company could justify its $2.5 trillion market value through fundamentals.

Earnings and Cash Burn Raise Red Flags

SpaceX posted a net loss of $4.94 billion in fiscal 2025, though revenue grew to $18.67 billion from $14.02 billion the prior year. In Q1 fiscal 2026, losses widened to $4.28 billion from $528 million year-over-year, despite revenue growth to $4.69 billion. Analysts noted that Starlink satellite services generate most current revenue, while the company burns cash on space exploration and unproven technologies like reusable Starship rockets.

Final Thoughts

SpaceX’s 8% drop reflects the gap between IPO hype and financial reality. With Oppenheimer targeting $250 and Arete Research projecting $401 by end-2027, analyst views diverge sharply, signaling high volatility ahead.

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