SpaceX (SPCX) shares fell 18% from the peak they reached right after the offering. Those who bought the shares on the open market are now almost at zero. Market participants are asking themselves whether the high of the historic debut is already behind them.

On Thursday, trading closed at $184.98 — 3.6% lower than the day before. According to CNBC, the average purchase price over the last five trading sessions, adjusted for volume, was $181.71. That is, buyers are only slightly above the break-even point — and yet on Tuesday the price intraday rose above $225.

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From $3 trillion to 7th place

In two days the company lost approximately $620 billion in market capitalization — the price of SpaceX fell from $3 trillion to about $2.37 trillion. For a while the company was ahead of Amazon and Microsoft, taking fourth place in the world, but now it has slid to seventh place, competing closely with TSMC.

The cause of the drop was the news of June 16: SpaceX announced the acquisition of Anysphere, the developer of the AI coding tool Cursor. The $60 billion deal was entirely in shares. This led to 3.4% dilution relative to SpaceX's IPO valuation — $1.77 trillion.

Morningstar analysts lowered the fair price of the shares from $63 to $62, noting that the deal increases share dilution for an issuer that was already considered overvalued. The analysts' maximum optimistic scenario assumes a value of $169 — below the market price.

The frenzy is subsiding

The drop proved sharp, and this shows how much the initial surge was held up by the frenzy of private investors. According to Vanda Research, over the first three sessions retail buyers put $369.8 million into SPCX — four times more than went into Nvidia over the same period. But already by Thursday, June 18, demand fell sharply: by midday, net retail purchases dropped to $9.1 million.

Source: BeInCrypto