SpaceX shares fell further in premarket trading on Tuesday, extending losses from the previous session. The stock dropped as much as 5% to around $147, slipping below its first-day opening price of $150. The decline also put the company at risk of falling below a $2 trillion market valuation.
Stock recovers some losses
Though there was an early drop during pre-market trading, SpaceX shares were trading at about $150.59 at 9:15 a.m. ET as the market opened. The stock was still down 2.6%, or $4.01, from the previous day’s close.
SpaceX has now fallen for three straight trading sessions, losing more than $600 billion in market value during that period. Monday alone wiped out around $400 billion, making it the company’s second-largest one-day loss on record. The biggest one-day loss remains Nvidia’s roughly $590 billion decline last year.
“I’d be cautious about seeing this as a second-chance buying opportunity. The drop looks dramatic in scale, but these swings aren’t unusual for a stock with such a small public float,” said Nic Puckrin, cross-asset analyst and founder of Coin Bureau to Reuters.
AI spending worries investors
The recent selloff comes as investors react to SpaceX’s growing spending plans for artificial intelligence. The company recently announced plans to sell investment-grade bonds and is expected to raise at least $20 billion in the first round of fundraising. The money will help support its AI expansion efforts.
SpaceX has also signed a multibillion-dollar agreement with Reflection AI to provide computing power and infrastructure for the startup. The deal is part of the company’s broader push into artificial intelligence.
Following a trend among tech giants
SpaceX is not alone in raising money to build AI infrastructure. Other major technology companies, including Alphabet, Amazon, Meta Platforms and Oracle, have also raised large amounts of debt in recent months to fund AI-related projects and data centers.
Even after the recent decline, SpaceX stock is still trading about 10% higher than its initial public offering price of $135, showing that the stock remains well above its debut level despite the sharp pullback.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a registered financial advisor in the respective jurisdiction.
