SpaceX shares experienced a significant drop of over 10% during early U.S. trading on June 22, following a cautious initiation of coverage by KeyBanc that notably lacked a price target. The decline has intensified concerns among investors regarding the company’s valuation, especially after its record-breaking market debut just weeks earlier.
KeyBanc analysts assigned a Sector Weight rating to SpaceX, emphasizing that while the company is poised to maintain its leadership in the space launch industry for the foreseeable future, its current stock price may already reflect much of its anticipated growth. The analysts described the risk-reward profile as balanced, suggesting limited upside from current levels.
The stock, trading under the ticker SPCX, fell to approximately $165.63, extending losses that began after the opening bell near $176. This pullback comes on the heels of a sharp post-IPO rally that propelled SpaceX’s valuation to heights that some market participants view as hard to justify. Morningstar, in a separate analysis, estimated a fair value of $63 per share, arguing that the stock is trading well above fundamental supports.
Beyond the stock decline, SpaceX also attracted attention with its first-ever bond offering. The company is issuing senior unsecured notes, with proceeds intended to repay bridge financing and fund general corporate purposes, despite sitting on roughly $100.8 billion in cash. This move follows the massive $85 billion raised in its June 12 IPO, which created new billionaires among early backers and pushed Elon Musk’s net worth above $1 trillion.
Investor focus is now split between SpaceX’s strong growth engines, such as Starlink and AI-related opportunities, and the question of whether the business can generate enough expansion to support its current market cap. The bond sale adds another layer of complexity, as traders analyze whether the recent stock slide signals a temporary correction after an extraordinary rally or the start of a more prolonged adjustment.