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SpaceX shares fall below IPO price as Pentagon AI talks emerge
Shares closed July 17 at $123.99, after an IPO on June 12 at $135 per share, and the stock is down as valuation metrics now diverge from AI cloud expectations.
SpaceX went public on June 12 at $135 per share, but just over a month later shares slid below the offer price, closing Friday, July 17 at $123.99, according to MarketBeat Ratings.
The outlet links the sharp valuation shift to a reported question over whether SpaceX can justify its premium price-to-sales multiple, especially as talks over a multi billion dollar Pentagon AI infrastructure contract could influence how investors value the company.
MarketBeat Ratings says market participants initially anchored valuation models to capital intensive launch logistics rather than scalable AI cloud infrastructure, contributing to a reported valuation contraction from nearly $2.95 trillion at the post-IPO peak to $1.62 trillion today.
The outlet also points to reported results that show SpaceX has a negative earnings per share of negative $1.27 on $4.69 billion in revenue, and argues that launch operations are capital intensive, which can compress profit margins and make software level multiples harder to sustain.