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FinanceSpaceX shares fall 5.7% in first decline since historic IPO
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SpaceX shares fell 5.7% on Wednesday, marking their first decline since the company's record-setting IPO last week. The drop ended a three-session winning streak that had briefly pushed SpaceX ahead of Amazon as the fifth-largest company by market capitalization. The stock's market value fell to just over $2.5 trillion, slipping below Amazon again. Analysts at Vanda Research noted that retail investor enthusiasm for SpaceX had been unprecedented, with the stock being the most purchased by retail investors for three consecutive sessions and attracting $369.8 million in inflows—more than quadruple the amount poured into Nvidia. The IPO raised a record $85 billion amid demand exceeding $350 billion. However, finance professor Jay Ritter cautioned about the 'Elon Musk effect,' warning of potential long-term volatility and substantial downside risk due to Musk's outsized voting power.
Source report
Topline
SpaceX shares fell on Wednesday for the first time since the company’s record-setting debut last week, potentially ending a three-session winning streak that had pushed Elon Musk’s firm ahead of Amazon as one of the world’s largest companies.
Key Facts
- Shares of SpaceX declined 5.7% to around $190 as of Wednesday morning, reversing two straight sessions of more than 19% surge and Tuesday’s 4.8% increase.
- The downturn lowered SpaceX’s market value to just over $2.5 trillion, falling below Amazon as the fifth-largest company by market capitalization. The company had opened the day within range of Microsoft ($2.8 trillion) as the fourth-largest.
- SpaceX shares may be cooling from record-setting investor demand: Vanda Research analysts wrote Wednesday that SpaceX was the most purchased stock by retail investors for three consecutive sessions, with inflows more than quadrupling those into Nvidia—hitting $369.8 million compared to the chipmaker’s $88.2 million.
- “We’re running out of superlatives to describe retail enthusiasm for SpaceX,” the analysts wrote.
Forbes Valuation
SpaceX’s IPO raised a record $85 billion after investor demand topped $350 billion, though some analysts have cautioned the stock may be volatile. Jay Ritter, a finance professor at the University of Florida, told Forbes ahead of SpaceX’s initial public offering that the stock may be influenced by the “Elon Musk effect,” suggesting its IPO would be boosted before adding long-term volatility tied to Musk. Ritter noted there was “substantial downside potential,” in part because Musk holds substantially more voting power than other shareholders.
Key Background
SpaceX’s IPO raised a record $85 billion after investor demand topped $350 billion, though some analysts have cautioned the stock may be volatile. Jay Ritter, a finance professor at the University of Florida, told Forbes ahead of SpaceX’s initial public offering that the stock may be influenced by the “Elon Musk effect,” suggesting its IPO would be boosted before adding long-term volatility tied to Musk. Ritter noted there was “substantial downside potential,” in part because Musk holds substantially more voting power than other shareholders.
Further Reading
Forbes: Musk’s Net Worth Hits $1.4 Trillion—SpaceX Passes Amazon As Fifth-Largest Company — By Ty Roush
Source
Forbes - BusinessWestern
Part of this Story
SpaceX's Record $1.8 Trillion IPO Set for June 12, 2026