SpaceX Is Down 30% Since Its Stellar Debut. Should You Buy It Now?

SpaceX shares have dropped 30% from their intraday high following the company's IPO debut and now trade below the first-day closing price. The stock raised $86 billion in the offering, marking one of the largest public debuts in recent years.

The company immediately announced a $25 billion bond offering after going public, signaling heavy capital requirements for its Starship development program. The debt raise follows closely on the heels of the equity offering, pointing to significant near-term cash needs despite the massive IPO proceeds.

Valuation metrics present a challenging picture. SpaceX currently trades at a price-to-sales ratio above 100, placing it in highly speculative territory even by growth stock standards. Analysts cited by The Motley Fool warn of substantial downside risk given the combination of extreme valuation multiples and unproven business ventures.

The 30% decline from peak has brought shares below their debut closing price, suggesting early buyers are already underwater and institutional support remains uncertain.