SpaceX shares moved below their initial public offering price on Wednesday, marking the first time the stock has traded under the $135 offer level since listing last month. At 12:35 ET the shares were down 2.2% to $133.02, a slide that comes after a choppy stretch of trading in the weeks following the company’s $86 billion IPO.
The stock’s early momentum was dramatic: in the first three trading days after the debut, shares jumped almost 50%. Since then, the rally has largely unwound and recent sessions have pushed the price beneath the IPO level.
Market participants are watching several company-specific and market-wide factors that could keep pressure on the stock. One immediate technical consideration is the approach of the first lockup expirations for insider and early-investor holdings. Those restrictions are scheduled to lapse after the company files its first quarterly results as a public company in the coming weeks, a timing that could increase selling supply.
Investor concerns were amplified after SpaceX reported a $4.9 billion net loss for the prior year. That disclosure prompted questions about the firm’s path to profitability and has been cited as a source of the stock’s vulnerability.
Broader market dynamics have also weighed on the shares. Uncertainty about the Federal Reserve’s interest-rate trajectory and fresh doubts over the durability of the recent rally in artificial intelligence-linked stocks - particularly among semiconductor companies - were cited as additional headwinds for the name.
Part of the stock’s early strength was driven by rapid inclusion in major passive benchmarks. The company was added to the Russell 1000 Index within weeks of its listing and was later included in the Nasdaq 100 after a rule change that accelerated eligibility for newly public large-cap companies. That benchmark-driven demand helped lift the shares in the immediate aftermath of the IPO.
Despite the recent weakening in the price, some sell-side analysts remain optimistic. Raymond James has set a price target of $800 per share, one of the more bullish valuations reported on the stock.
Market context: The stock’s movement reflects an intersection of company-specific results, index-driven flows, and macro-level investor caution. How these elements play out over the coming weeks - including reactions to the company’s upcoming quarterly filing and the end of initial lockup periods - will be central to the stock’s near-term direction.