SpaceX’s post-IPO slide deepened on Monday, with shares falling another 1.4% to $113.50. That puts the stock below its IPO price and marks its 13th decline in the last 16 sessions.
The drop from the June peak of $225.64 has now erased more than $1.2 trillion in market value. That figure is roughly equal to the entire market cap of Tesla.
Space Exploration Technologies Corp., SPCX
Cathie Wood’s ARK Investment Management moved to buy the dip on Monday. The firm purchased 124,543 SpaceX shares worth around $14.1 million spread across its ARK Innovation, ARK Autonomous Technology and Robotics, ARK Next Generation Internet, and ARK Space and Defense Innovation ETFs.
ARK also added to its Tesla position, buying a combined 27,864 shares worth approximately $8.6 million through two of its ETFs.
On the sell side, ARK offloaded shares in Deere and Co, selling 9,407 shares valued at $5.9 million. The firm also sold 72,497 shares in 10X Genomics, worth around $3.4 million.
Wood remained upbeat despite the declines. After SpaceX’s latest Starship flight she posted on X: “Bull markets do not end in this way. They end when everyone believes the sky is the limit.”
SpaceX’s 13th Starship test flight completed most of its major objectives. These included deploying operational Starlink V3 satellites, relighting a Raptor engine in space, and achieving an intact splashdown with telemetry data transmitted throughout.
Raymond James kept its Strong Buy rating on the stock with a price target of $800, which would represent over 600% upside from current levels. The firm called the flight an incremental step toward full reusability.
The Super Heavy booster was the weak point, failing to complete a successful landing burn.
SpaceX is due to release its first earnings report as a public company on August 4. Two days later, up to 911.5 million locked-up shares could become eligible for sale, which is the first tranche of the post-IPO lockup expiry. Elon Musk and certain other insiders remain under longer restrictions.
Long-term investor Ron Baron said SpaceX made up $25 billion of his firm’s $70 billion in assets as of June. His firm invested $2 billion across 27 transactions since 2017 and added another $1 billion at IPO. Baron believes SpaceX could eventually reach a valuation of $20 trillion to $40 trillion over the next 10 to 15 years.
Ross Gerber of Gerber Kawasaki said his firm avoided the SpaceX IPO, but suggested the selloff could eventually make it “a bargain” sometime in the next year.
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