SpaceX shares declined more than 3% in premarket trading on Tuesday, extending losses after a $400 billion tech sector selloff on Monday as the company's post-IPO rally lost momentum [1]. The stock had previously surged over 50% from its offering price following its record-breaking IPO on June 12, briefly surpassing Amazon and Microsoft in market capitalization, but later fell back below both as investor sentiment cooled [1]. On Monday, SpaceX's stock dropped 16%, following declines of 3.6% and 5% in the two preceding trading days, closing with a market capitalization of $2 trillion [1]. As of 4:30 a.m. E.T. on Tuesday, shares were trading down 3.43% [1].
In addition to the market volatility, SpaceX announced a senior unsecured notes offering on Monday and disclosed holding $100.8 billion in cash and cash equivalents as of June 19 [1]. The company also revealed it had signed a major computing power agreement with open-source AI startup Reflection, granting the startup access to Elon Musk's Colossus infrastructure [1]. Despite the initial surge in share price, by the end of last week, the average investor who bought SpaceX shares had seen nearly all of their gains erased [1].
CONCLUSION
SpaceX's shares have experienced significant volatility following their record-breaking IPO, with recent declines wiping out most early investor gains. The company's substantial cash reserves and new AI partnership were not enough to offset negative market sentiment amid a broader tech selloff.