Why SpaceX Stock Plummeted This Week

SpaceX stock dropped 20.2% in its second week of trading, following its June 12 IPO that raised $85.7 billion. The decline pushed shares 24% below their post-IPO peak as the initial debut euphoria evaporated and broader market headwinds intensified.

The selloff coincided with weakness in AI chip stocks and a wider market pullback, pressuring newly public growth names. SpaceX entered public markets trading at 108 times revenue—a multiple that leaves little room for execution missteps or macroeconomic deterioration. That valuation reflects aggressive expectations for sustained hypergrowth, making the stock vulnerable to reassessment as investors weigh slowing economic indicators against stretched pricing.

The company's trading pattern mirrors typical post-IPO behavior, where early momentum fades once institutional buyers finish initial positioning and retail enthusiasm cools. SpaceX's revenue multiple suggests the market priced in years of growth, leaving shares exposed to volatility if quarterly results or forward guidance disappoint.