On June 18, SpaceX declined 3.43% in pre-market trading, trading at $185.14/share with turnover of $674 million. This marks the first decline since the company's record-breaking $750 billion IPO on June 12, ending a three-day streak that saw the stock surge approximately 49% from its $135 offering price.
The pullback comes as valuation concerns intensify. Legendary short seller Michael Burry publicly questioned SpaceX's near-$3 trillion valuation, noting annual revenue below $20 billion represents a severe fundamental disconnect, though he stated put options remain too expensive to initiate a short position. Morningstar has maintained its fair value estimate at just $63 per share — less than half the IPO price — while CFRA issued a sell rating with a target price cut exceeding 40%.
Market participants also attribute the volatility to SpaceX's extremely thin float, with only approximately 4.2% of total shares available for trading. The prior session's intraday swing — up over 16% before closing up just 4.8% — highlighted the instability of price discovery in a low-float environment. Some institutional strategists view the dip as a potential buying opportunity ahead of eventual index inclusion eligibility in 15 trading days.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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