SpaceX Shares Drop 22% Below IPO Price Amid AI Correction
Space Exploration Technologies Corp. shares fell 22% below their June IPO price as investors reassess the valuation of AI-dependent companies.
Shares of Space Exploration Technologies Corp. have declined 22% below their June IPO price following a broader market correction in artificial intelligence stocks. The company's valuation is heavily linked to AI, with $26.5 trillion of its $28.5 trillion total addressable market relying on the technology.
Because the company is currently unprofitable, it depends on outside capital to fund its operations and growth, making it susceptible to shifts in market sentiment. To maintain a valuation exceeding $1 trillion, the aerospace firm must successfully commercialize the Starship rocket, scale the Starlink satellite network economically, and develop both orbital and terrestrial data centers.
Barclays noted that while the market is questioning the funding for hyperscalers, demand for AI remains strong.
