SpaceX Stock Experiences Volatility After IPO, Investor Enthusiasm Cools

New York. It has been a month since SpaceX, led by Elon Musk, made history in the stock market. The intense investor enthusiasm seen during the public stock offering (IPO) on June 12 has now reached a 'wait and see' situation to some extent.

BBC has reported in its news that SpaceX's stock price has seen considerable fluctuations in its first month as a public company. Although the company set a price of $135 per share, it reached $176 on the first day of trading and closed at $160.95. This was registered as the world's largest IPO.

Within a week of that, as the stock price reached $225 per share, SpaceX managed to surpass even giant companies like Amazon and Microsoft in terms of market capitalization. This enthusiasm was also due to investors viewing SpaceX not just as a space company but as a company linked to 'Artificial Intelligence'. Musk's AI startup SpaceX's acquisition of AI and its popular chatbot 'Grok' led many to see it as the future of the AI field.

However, by the end of the first month, the enthusiasm has somewhat diminished. Currently, SpaceX's stock is trading around $145 per share, which is about 35 percent less than its peak. Investors have started questioning the company's actual revenue sources and profits, especially after Starlink cut its service fees in the Memphis region.

The news of Starlink's price cut alone caused an 8 percent drop in stock price in a single day. In the meantime, Elon Musk has made a shrewd move. When the stock price reached its peak, he announced the acquisition of the AI startup 'Cursor' for $60 billion.

This deal was done entirely through stock exchange, due to which Musk was able to acquire the startup 'for free' by giving his own company's high-value shares. Despite the decline in the company's stock price, Elon Musk has become the world's first 'trillionaire'. He aims to reach SpaceX's annual revenue of $1 trillion by 2030, whereas last year the company's revenue was only $18 billion.

According to analysts, although small investors buying shares now appear to be at a loss, large investors are still enthusiastic. Investment banks like Morgan Stanley have projected SpaceX's stock price to reach $300 in the future.

Now all eyes are on the company's first quarterly financial report to be released in August. It is estimated that there may be further fluctuations in the market as the 'lock-up' period, during which company employees can sell their shares, will also expire around the same time.