Spacex Shares Plummet 45% Post-ipo Amid Investor Panic

WHO:

Business Insider - SpaceX, investors, skeptics, short-sellers, Wall Street analysts, UBS, Bernstein, Raymond James

Benzinga - Gary Black, SpaceX

WHAT:

Business Insider - SpaceX shares plummeted 45% post-IPO, trading below the $135 offer price for most of the past two sessions.

Business Insider - SpaceX shares peaked at $2.64 trillion in market value on day three of trading, then dropped to $1.63 trillion.

Business Insider - SpaceX short-sellers gained approximately $5 billion since the IPO, with around 30% of the total float sold short.

Business Insider - 1.37 billion shares will be unlocked for sale two full trading days after SpaceX's second-quarter earnings report, expected after the closing bell on August 17.

Benzinga - SpaceX's market capitalization is approximately $1.7 trillion, with a forward enterprise value-to-revenue multiple of about 40 times.

Benzinga - SpaceX closed 5.43% lower at $123.99 on Friday and edged up 0.12% in extended trading.

WHEN:

Business Insider - SpaceX's second-quarter earnings report is due after the closing bell on August 17.

Benzinga - Gary Black stated he would not get excited about SpaceX stock until it trades below $100.

WHY:

Business Insider - Critics argue that SpaceX's initial valuation was too high and that retail investors would run out of buying power early in trading.

Benzinga - Gary Black believes SpaceX's valuation leaves little room for upside and that the IPO should not have been priced at $135.

HOW:

Business Insider - SpaceX was forced to abort a rocket launch due to engine failure, contributing to the decline in share price.

Benzinga - Investors are looking ahead to SpaceX's first earnings report and the expiration of the IPO lockup period as potential catalysts for the stock.

(UPDATED July 20, 2026 16:27 UTC)

SpaceX shares have seen a dramatic decline, plummeting 45% post-IPO and trading below the $135 offer price for most of the past two sessions, with a market capitalization currently around $1.7 trillion. Critics, including Gary Black, argue that the initial valuation was too high and express concerns about retail investors running out of buying power, while short-sellers have gained approximately $5 billion since the IPO. Looking ahead, 1.37 billion shares will be unlocked for sale two full trading days after SpaceX's second-quarter earnings report, which is expected after the closing bell on August 17.