SpaceX extends losses after $600b wipeout, tech stocks tumble again

SpaceX shares have extended their losses, marking a dramatic downturn for the company following its record-breaking initial public offering. The rocket and AI firm has seen its market value plummet by more than $600 billion in recent trading sessions.

On Tuesday, SpaceX's stock price slipped further, falling 1.9% to $151.60. Earlier, it had dipped as low as $146.88, falling below its IPO price of $135 and its opening price on its market debut. This sharp decline follows a period of intense trading frenzy that briefly saw SpaceX surpass tech giants like Microsoft and Amazon in market capitalization.

Analysts urge caution, noting that such significant swings are not uncommon for stocks with a small public float. Nic Puckrin, a cross-asset analyst, advised against viewing the current dip as an immediate buying opportunity, emphasizing the dramatic scale of the price movements.

The struggles of SpaceX are occurring amidst a broader selloff in the technology sector. Many highly valued tech stocks are on track to extend their rout, indicating a wider market sentiment shift impacting growth-oriented companies. Despite the recent drop, SpaceX shares remain more than 10% above their IPO price.

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I’d be cautious about seeing this as a second-chance buying opportunity. The drop looks dramatic in scale, but these swings aren’t unusual for a stock with such a small public float.