SpaceX $1.75 Trillion IPO Triggers Surge and Collapse of Proxy Stocks
On June 12, 2026, SpaceX debuted on the Nasdaq with a $1.75 trillion IPO, pricing at $135 per share and surging to nearly $168, pushing its market cap above $2 trillion. Ahead of the IPO, proxy stocks like EchoStar, AST SpaceMobile, and Virgin Galactic surged on massive options volume. However, upon direct SpaceX trading, these proxies plunged sharply—Virgin Galactic dropped 34%, EchoStar 14%, and AST SpaceMobile 13%—as investors rotated capital into direct SpaceX ownership. Options traders remain bullish on the dip, and space ETFs continue to attract inflows.
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SpaceX Loses $620 Billion in Value as Post-IPO Rally Reverses Sharply
SpaceX (SPCX) shares have fallen 18% from their post-IPO peak, shedding approximately $620 billion in market capitalization over two days, dropping the company's valuation from nearly $3 trillion to $2.37 trillion. The decline was triggered by SpaceX's announcement of a $60 billion all-stock acquisition of Anysphere, the company behind AI coding tool Cursor, causing 3.4% dilution. Morningstar cut its fair value estimate to $62, noting the stock is overvalued, while Oppenheimer raised its price target to $250. Retail investors, who poured $369.8 million into SPCX in the first three sessions, saw buying slow to $9.1 million by mid-Thursday. The stock closed at $184.98, slightly above its five-day volume-weighted average of $181.71, meaning many open-market buyers are near break-even. Upcoming supply pressure from a late July lockup expiry and a potential $20 billion xAI bond sale may prolong the slide. The first earnings report as a public company, due in late July, will be a key test.
Yahoo FinanceSpaceX shares fall as post-IPO frenzy loses steam
Shares of SpaceX fell more than 6% on Thursday, as the post-IPO frenzy that briefly made it one of the world's top five most valuable companies appeared to fade. The stock was last down 6.5% at $178.50, after a nearly 5% drop the previous session, though it remains more than 30% above its $135 offering price. If losses persist, SpaceX's $2.52 trillion market value could shrink by over $150 billion. Analysts attributed the decline to profit-taking following the historic IPO. Other space companies like Rocket Lab, Planet Labs, AST SpaceMobile, and Intuitive Machines also fell. Retail investor activity, which had been aggressive with over $300 million in net purchases over three sessions, slowed sharply to just $9.1 million. SpaceX announced a $60 billion stock acquisition of AI startup Anysphere, developer of the Cursor coding agent. The company is also preparing to meet investors for a bond offering of at least $20 billion to fund its AI expansion.
Yahoo FinanceSpaceX Opened at $150: What Else Happened on Day 1?
SpaceX completed its first day as a publicly traded company on June 12, 2026, after pricing its IPO at $135 per share. The stock opened at $150, peaked at $176.52, and closed at $160.95, a 19.2% gain from the IPO price. Over 500 million shares were traded, and SpaceX achieved a $2.1 trillion market cap, surpassing Tesla and ranking among the world's top 10 most valuable companies. Other space stocks, including Rocket Lab, AST SpaceMobile, and EchoStar, fell sharply on the day, likely due to investors rotating into SpaceX. Retail investors submitted over $100 billion in orders ahead of the IPO. By June 16, SpaceX shares had risen to $201.80. The article advises retail investors not to make emotion-based decisions and notes that long-term investment opportunities remain available.
Yahoo FinanceSpaceX Proxy Stocks Plunge as Real IPO Arrives; Traders Buy the Dip in AST and EchoStar
On June 12, 2026, SpaceX launched its historic IPO on the Nasdaq, causing a sharp reversal in so-called 'proxy stocks' that had surged in anticipation. EchoStar (SATS), which owns an estimated 3% of SpaceX, dropped 14%; AST SpaceMobile (ASTS) fell nearly 13%; and Virgin Galactic Holdings (SPCE) plunged 34%. Despite the selloff, options traders remained bullish, with calls outnumbering puts across all three names. AST was the most popular, trading over 250,000 contracts worth more than $60 million in premium. Analysts noted that institutional and retail demand for space-focused ETFs like Procure Space (UFO) and Defiance Drone and Modern Warfare (JEDI) is also propping up proxy stocks. The IPO priced at $135 per share, and SpaceX options are set to begin trading on Tuesday, with expectations of extremely high retail activity. Webull's CEO predicted SpaceX could become one of the most actively traded options names among retail investors.
US Top News and AnalysisSpaceX IPO Triggers Collapse of Space Stock Proxy Trades as Direct Ownership Becomes Available
The official trading debut of SpaceX (SPCX) on June 12, 2026, triggered a dramatic unwinding of proxy trades that investors had used to gain indirect exposure to the space giant. Stocks with tangible connections to SpaceX, such as Virgin Galactic (SPCE), AST SpaceMobile (ASTS), EchoStar (SATS), Intuitive Machines (LUNR), and Planet Labs (PL), experienced sharp declines as investors liquidated peripheral holdings to redirect capital toward direct SpaceX ownership. SPCE plunged 34%, ASTS fell nearly 13%, and SATS dropped 14%. The rotation effect was anticipated by analysts who had outlined three possible scenarios. SpaceX opened at $150, surged to nearly $168, pushing its market capitalization above $2 trillion and making Elon Musk the world's first trillionaire. The IPO was roughly four times oversubscribed with over $350 billion in investor demand against the $75 billion offering. Options activity suggests some traders view the declines as buying opportunities, while space-themed ETFs continue to attract inflows from investors unable to access SpaceX directly.
Yahoo FinanceSpaceX Proxy Stocks Plunge as IPO Arrives; Traders Buy the Dip in AST and EchoStar
SpaceX 'proxy stocks' that surged ahead of the company's historic IPO on June 12, 2026, are now unwinding gains as the real deal arrives. EchoStar, which owns an estimated 3% of SpaceX, dropped 14%. AST SpaceMobile fell nearly 13%, and Virgin Galactic Holdings plunged 34%. Despite the selloff, options traders remain bullish, with calls outnumbering puts in all three names. AST SpaceMobile was the most popular, trading over 250,000 contracts for more than $60 million in premium. Market analysts note that institutional and retail demand for SpaceX exposure is driving continued interest in proxy stocks and space-focused ETFs like UFO and JEDI. The IPO priced at $135 per share, and SpaceX options are expected to begin trading on Tuesday, with analysts predicting it could become one of the most actively traded options names among retail investors.
US Top News and AnalysisOptions Volume in Space Stocks Surges as Investors Seek Exposure to SpaceX IPO
Ahead of SpaceX's historic $1.75 trillion IPO, options trading in space-related stocks has exploded as investors seek proxy exposure to the company. EchoStar, which owns an estimated 3% of SpaceX, saw its options volume surge to more than eleven times the 30-day average, with shares rising 11%. AST SpaceMobile, whose satellites are set to launch on a SpaceX rocket, jumped 12% alongside nearly $140 million in options trading. Even Virgin Galactic saw a surge in call buying. Danny Kirsch of Piper Sandler noted both retail and institutional demand for these proxy trades. ETFs targeting the space sector are also seeing inflows, forcing them to buy shares of these companies. The SpaceX IPO is set to price at $135 a share, and options on the stock will begin trading on Tuesday, with analysts predicting it could become one of the most actively traded options names among retail investors.
US Top News and AnalysisSpace Stocks Plunge as SpaceX Soars in Public Market Debut
Space-related stocks experienced a sharp decline on Friday as SpaceX made its highly anticipated public market debut. SpaceX's stock opened at $150, up from its $135 IPO price, in the largest public offering on record, raising $75 billion. The Elon Musk-led company's strong debut drew investor attention away from competitors, causing shares of Redwire, Satellogic, and AST SpaceMobile to fall over 11%, while EchoStar and Rocket Lab dropped 10%. The Procure Space ETF declined 7%, reversing prior gains. Virgin Galactic tumbled 31% amid volatile trading and short seller activity. Wall Street analysts see growing opportunities in satellite connectivity and orbital AI data centers. Oppenheimer initiated coverage of SpaceX with an Outperform rating and a $190 price target, implying a $2.5 trillion valuation.
Yahoo FinanceSpace stocks surge as investors pile into proxy trades ahead of SpaceX IPO
Space-related stocks surged on Thursday and Friday as investors scrambled for exposure to SpaceX ahead of its historic $1.75 trillion IPO. Options volumes exploded in proxy names like EchoStar (SATS), which owns an estimated 3% of SpaceX, and AST SpaceMobile, whose satellites launch on SpaceX rockets. EchoStar rose 11% with options volume 11 times the 30-day average, while AST SpaceMobile jumped 12% alongside $140 million in options trading. Even Virgin Galactic saw a surge in call buying. Analysts attribute the frenzy to both retail and institutional demand for any way to 'get long SpaceX' ahead of the IPO pricing at $135 per share. Space ETFs like UFO and JEDI are also seeing inflows, forcing them to buy proxy stocks regardless of fundamentals. SpaceX options are expected to begin trading on Tuesday and be among the most actively traded retail names.
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