Investors who purchased SpaceX shares in the open market following the company’s blockbuster stock market debut have seen most of their paper profits evaporate after a steep decline erased a significant portion of the stock’s early rally.
shares dropped 3.6% on Thursday to around $184.98. The stock’s five-day volume-weighted average price (VWAP) stood at $181.71. VWAP, a commonly tracked market indicator, reflects the average price at which a stock has traded over a given period while factoring in trading volumes, helping investors assess overall market positioning.
The latest trading levels indicate that investors who bought the stock after its IPO are now, on average, close to breakeven.
Following its public debut at $135 per share, SpaceX surged as enthusiasm around one of the most closely watched IPOs in recent years drove the stock above $225 during Tuesday’s session. Since reaching that high, however, the shares have fallen roughly 20%, giving back a large share of their post-listing gains. The stock has now returned to levels last seen on the second trading day after the IPO.
The pullback has also reduced profits for retail investors who secured IPO allocations through brokerage firms such as Robinhood, Fidelity and SoFi. Although many individual investors received far fewer shares than they had applied for — in some instances only a single share or a small allocation — those shares were purchased at the IPO price of $135, allowing investors to remain in profit despite the recent correction.
The sharp reversal highlights a shift in investor sentiment after the company’s stellar market debut. While the stock’s early rally briefly pushed valuation toward the $3 trillion mark, investors are increasingly evaluating whether such rapid gains are supported by the company’s long-term earnings potential and business fundamentals.
Despite weakness in SpaceX shares, the broader US equity market ended Thursday on a strong note. Technology stocks led the advance, with semiconductor companies providing a major boost to the Nasdaq.
The Dow Jones Industrial Average climbed 72.15 points, or 0.14%, to close at 51,564.70. The S&P 500 rose 80.48 points, or 1.08%, ending at 7,500.58, while the Nasdaq Composite jumped 496.28 points, or 1.91%, to finish the session at 26,517.93.
SpaceX eyes $20 billion bond sale following historic market debut
Bankers advising Elon Musk’s SpaceX are set to begin discussions with investors as early as next week regarding a major bond issuance following the company’s landmark IPO, Bloomberg reported.
The proposed debt offering is expected to raise at least $20 billion, with investor calls potentially starting on Monday as the company gauges demand for the transaction.
SpaceX, whose businesses span rockets, satellite communications and artificial intelligence, is preparing to tap the investment-grade bond market for the first time through a US dollar-denominated offering. The move comes after the company secured BBB-range credit ratings from all three major rating agencies on Thursday, a development that should help lower borrowing costs and broaden investor interest.
Funds raised through the bond sale are expected to be used primarily to refinance a $20 billion bridge loan that is scheduled to mature in September 2027.
According to documents filed with the US Securities and Exchange Commission ahead of its IPO, the bridge facility represents the largest portion of SpaceX’s long-term debt obligations. As of March 31, the company carried approximately $29.1 billion in long-term debt, with the bridge loan accounting for the majority of that amount.
The planned bond issuance marks another significant step for SpaceX as it looks to strengthen its balance sheet and secure long-term financing following one of the largest and most closely watched public offerings in recent market history.