SpaceX, a sharp fall back to Earth: share price close to IPO price
The shares are trading at around $138, very close to the placement price of $135
Key points
It was supposed to be the stock that would take Wall Street to Mars. For a few weeks, indeed, it seemed as though gravity had been abolished: following its IPO at $135, SpaceX had soared to over $225 per share, reaching a market capitalisation of around $3,000 billion. A valuation worthy of the elite club of the biggest Big Tech firms, built more on promises of the future than on present-day profits.
Then, however, the market did what it does best: it stopped dreaming and got back to doing the maths.
Today, the share price is hovering around $138, practically neck and neck with the initial public offering price of $135. Hundreds of billions in market capitalisation have evaporated since the peak. That’s no small matter.
Profitability
The message from investors seems quite clear: sky-high valuations are justified by profits, not by PowerPoint presentations.
So far, it has mainly been Starlink, the satellite telecommunications division, that has been driving the business. But clearly, that is no longer enough.
