SpaceX Stock Slides After IPO Rally as Valuation Concerns Grow

SpaceX (NASDAQ: SPCX) shares extended their pullback on Thursday after a remarkable post-IPO rally, as investors locked in profits and questioned the company's lofty valuation. The stock, which dropped nearly 10% earlier in the session, trimmed losses in late trading and was down 1.2% at $189.47 by 3:54 p.m. ET.

Despite the decline, SpaceX stock remains well above its $135 IPO price. The Elon Musk-founded aerospace and artificial intelligence company recently surpassed Amazon in market value, highlighting the extraordinary investor enthusiasm surrounding its public debut. SpaceX also confirmed that underwriters fully exercised the greenshoe option, increasing total IPO proceeds to $85.7 billion.

The selloff comes amid growing concerns over SpaceX’s valuation and strategic direction. Investors are closely watching the company’s recently announced $60 billion all-stock acquisition of Anysphere, the developer of AI coding platform Cursor. The deal has generated mixed reactions among institutional investors, with some questioning the company’s capital allocation strategy. Market participants are also preparing for the upcoming lock-up expiration in August, which could increase share supply and create additional selling pressure.

Nevertheless, Wall Street remains divided. Oppenheimer raised its price target on SpaceX to $250 from $190, citing strong growth potential from the Cursor acquisition. The firm estimates Cursor is generating an annualized revenue run rate of approximately $4 billion and could reach $6 billion by the end of 2026. Analysts believe SpaceX’s integrated presence across launch services, satellite internet, AI infrastructure, data centers, and software applications provides significant competitive advantages.

Meanwhile, financial disclosures have sparked additional scrutiny. SpaceX reported a net loss of $4.9 billion in 2025 and a further $4.28 billion loss during the first quarter of 2026, with Starlink remaining its only profitable business segment.

Adding to the bullish outlook, Arete analyst Andrew Beale initiated coverage with a Buy rating and a street-high $401 price target. He highlighted the growth potential of Starlink’s V3 satellites in suburban broadband markets and praised SpaceX’s long-term strategy in space technology, connectivity, and artificial intelligence.

Other space-related stocks also declined on Thursday, including Intuitive Machines (NASDAQ: LUNR), Satellogic (NASDAQ: SATL), Virgin Galactic (NYSE: SPCE), AST SpaceMobile (NASDAQ: ASTS), and EchoStar (NASDAQ: SATS), reflecting broader weakness across the space sector.