SpaceX Shares Drop After Record-Breaking Nasdaq IPO

Shares of Space Exploration Technologies Corp. have experienced significant volatility following its June 12 IPO on the Nasdaq. The company debuted at $135 per share with a record-breaking market value of $1.77 trillion, eventually peaking at $225.64. However, the stock dropped to $108 by late July, erasing over $1 trillion in market capitalization, before recovering to trade between $138 and $140 by late August.

The company has vertically integrated its operations, absorbing xAI and folding rockets, Starlink, X, and the Grok AI model into a single entity. Financial results for the second quarter of 2026 show revenue rose 92% year-over-year to $7.8 billion, driven largely by a tripling of AI segment sales. Despite this growth, the company reported a negative free cash flow of $25 billion for the first half of 2026 and a second-quarter net loss of $541 million.

Market pressure stems from heavy spending on AI infrastructure and upcoming lock-up expirations. While Starlink serves as a profitable cash engine, Starship and AI projects remain significant cash drains. CEO Elon Musk has maintained an optimistic outlook, claiming the company could eventually be worth more than the rest of Earth. Wall Street analysts remain divided, though a median target price of $217 suggests the stock is currently undervalued.