SpaceX shares fell for the third consecutive day and the company’s market value declined by billions of dollars. The fall came after Elon Musk’s company said it was selling investment-grade bonds for the first time. It is believed that this is the beginning of the company taking huge loans to meet its big targets related to Artificial Intelligence (AI). The special thing is that due to three consecutive days of decline, the valuation of SpaceX has seen a decline equal to the total GDP of UAE and Norway. Let us also tell you what kind of figures are being seen regarding SpaceX shares and its valuation.
Huge loss to SpaceX
SpaceX shares closed 16% lower at $154.60 on Monday, the lowest level since the company’s first day of trading. With this fall, the total loss in three days became 23 percent and during this period the company’s value decreased by more than $600 billion. Now the market capitalization of the company is a little more than $2 trillion. Michael O’Rourke, chief market strategist at JonesTrading, said that sellers now dominate. Anyone in the world who wanted to buy it has already bought it.
World’s largest IPO
The initial days of trading following SpaceX’s record $75 billion initial public offering (IPO) were the kind of volatility typically seen in new IPOs with low ‘float’ (shares available for trading) — only 4.2 percent of total shares were available for trading on the first day — and high interest from retail investors. Still, despite Monday’s loss, SpaceX remains the world’s sixth-largest company and its shares are worth about 15 percent more than the IPO price of $135.
Musk will raise money through bonds
According to Bloomberg’s report last week, the rocket, satellite and AI company is trying to raise at least $20 billion from its first bond offering. The company said on Monday that SpaceX has also signed a multi-billion dollar agreement to provide computing resources to AI startup ‘Reflection AI’. SpaceX’s embrace of artificial intelligence, including its purchase of Musk’s xAI in February, meant investors were closely watching the listing ahead of the IPO prospects of rivals – Anthropic PBC and OpenAI. Both companies are planning to go public this year and their valuation is expected to be around $1 trillion.
retail trading strongest
According to Vanda Research, retail trading for SpaceX (whose official name is Space Exploration Technologies Corp) was the strongest of any IPO in recent history. This group purchased a total of $ 405 million in the first five sessions. The data showed that retail investors bought more SpaceX shares last week than all the shares of the ‘Magnificent Seven’ (seven big tech companies) combined. Retail traders remained net buyers of SpaceX on Monday, but investment flows were below last week’s levels, according to Vanda data.
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