SpaceX shares tumble as post-listing rally loses momentum

SpaceX shares slid sharply as the first-wave enthusiasm around its blockbuster market debut cooled, with the stock down more than 6% on Thursday and at one point nearly 9% lower intraday to about $178.50. The pullback came after a frantic run-up that had made SpaceX one of the most closely watched listings of the year and briefly put its valuation above some of the world’s largest companies.

The reversal followed a stunning opening stretch. SpaceX jumped 19% in its Nasdaq debut on Friday, June 12, from an IPO price of $135 a share. During the rally, the company’s market value crossed $2 trillion and at one point reached roughly $2.94 trillion in intraday trading. By Thursday, the stock was still trading well above its offering price, but it had also climbed more than 40% from the debut before the latest selloff, a move that suggested early buyers were taking profits after a rapid re-rating.

The surge was not driven by fundamentals alone. Heavy retail demand helped power the first sessions, and frenzied trading in newly listed options contracts added another layer of momentum. That kind of price action can amplify gains quickly, but it can also leave a stock vulnerable once the initial burst of demand fades and investors begin asking how much future growth is already embedded in the price.

The valuation debate is now shifting from scarcity to sustainability. SpaceX briefly overtook Amazon in market capitalization during the rally and even topped Microsoft at moments, a ranking that sharpened the question of whether investors are treating the company as a transformational industrial platform or as a momentum trade riding a wave of enthusiasm. Analysts said the scale of the IPO, the short time since listing and the stock’s volatility made a pullback unsurprising.

Retail investors were active early, but brokerage restrictions may have limited how quickly some holders could trade out. Platforms including Fidelity, Robinhood, E*TRADE and SoFi imposed 15- to 30-day limits on selling for many small investors, with warnings that violations could cost them access to future hot listings such as OpenAI and Anthropic. That structure gave large funds more flexibility while leaving individual buyers to ride out the volatility.

The pressure also comes as SpaceX broadens its story beyond rockets and satellites. On June 16, the company agreed to buy Anysphere, the startup behind Cursor, in a $60 billion all-stock deal expected to close in the third quarter of 2026. The filing disclosed a $10 billion termination fee if the deal collapses under specified circumstances, underscoring both the ambition of the move and the execution risk attached to it. For now, the stock’s first major test is whether investors still believe the price can be justified after the debut excitement has faded.