Optimistic experts and investors believe SpaceX deserves a high value because its Starlink internet service makes money.
BY Mahnooor | 18-07-2026
SpaceX’s stock fell below its big initial public offering price of $135 per share, which is a bad sign for Elon Musk’s internet and rocket company. It could face more ups and downs in early August when the number of shares that can be traded on the Nasdaq is set to rise a lot.
On Wednesday, the stock dropped as low as $132.15 before ending at $135.27. It has now fallen 33% from its highest closing price right after the public sale raised a record $75 billion on June 11. Even after this big drop, it is still one of the most valuable companies on Wall Street, with a market value of about $1.8 trillion.
SpaceX’s IPO was the biggest in US history, but it only sold less than 5% of its shares on the stock market. This made investors fight for a small number of shares, which pushed the company’s value to $2.1 trillion after its first day on Nasdaq. In the coming months, restrictions on insider shares called ‘lockup’ will end.
This could flood the market with more shares. Jay Hatfield, CEO of Infrastructure Capital Advisors in New York, said, ‘We think at this level, it’s fairly safe to at least trade. But we won’t invest too much because the lockup is coming.’
After the selloff, the stock’s price is 49 times its expected revenue, making it one of Wall Street’s most expensive stocks by that measure. For comparison, Tesla, another favorite of Musk’s investors, recently had a price that was 15 times its revenue.
Bullish analysts and investors say SpaceX deserves a high value because of its profitable Starlink internet service, its government rocket launch business, and Musk’s history of keeping investor loyalty, even though it reported a net loss of almost $5 billion last year.
Of 32 analysts who rated the stock, 27 said to buy it, only 1 said to sell, and 4 said to hold, according to LSEG data.
Reuters looked at 50 big US IPOs since 2010. It found that companies whose shares dropped below their IPO price in the first two months after listing later did worse than those that didn’t drop, though most still made money.
Out of 50 companies, 21 lost value in the first two months after going public. But those stocks later grew, with a middle value of 61% increase. In contrast, the other 29 companies had a bigger growth, with a middle value of 112% increase from their start.
Prison terms begin to end
Over the next few months, many rules that stop insiders, workers, and early investors from selling more stock will end.
In the first of these changes, regular employees and some early investors can sell 911.5 million shares on the second trading day after the company’s first quarterly report.
The company hasn’t said when its first earnings report will be. Analysts think it will be in early August.
Those shares that can be sold are now worth about $123 billion, which is more than the $86 billion worth of shares that are currently traded on the Nasdaq.
Another 455.8 million shares can be sold if SpaceX’s stock price stays above $175.50 for at least five out of ten straight trading days before the company’s next quarterly report.
Overall, restrictions ending by December 8 will raise SpaceX’s publicly tradeable shares to 40% of the company, while the remaining 60%, including Musk’s shares, cannot be sold until mid-2027.
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The current account fell into a deficit of 649 million dollars.
