SpaceX's stock closed at $148 on Wednesday, falling below its $150 debut price for the second consecutive day. The company was added to the Nasdaq 100 index on Tuesday, less than a month after its June 12 IPO, which raised $85.7 billion after underwriters exercised the greenshoe option. The stock initially soared to a high of $201.80 on June 16 but has since declined.
Market Reaction and Analyst Views
The inclusion in the Nasdaq 100 required index funds and ETFs to buy SpaceX shares, potentially boosting demand. However, the stock's recent decline has sparked mixed reactions. Morgan Stanley set a $300 price target, while Goldman Sachs projected $205. J.P. Morgan also expressed optimism, targeting $225 and endorsing Elon Musk's goal of $1 trillion in revenue by 2031.
Skepticism and Long-Term Concerns
Critics, including Jeremy Grantham of GMO, have dismissed SpaceX's ambitious goals, calling its IPO the 'craziest in history.' Grantham argued that future investors will view the company's lofty aspirations—such as making life multiplanetary—as laughable. Despite the skepticism, analysts generally remain bullish, citing SpaceX's technological advancements and market potential.
Broader Implications
The stock's volatility reflects broader debates about the valuation of high-growth tech and aerospace companies. While some investors see SpaceX as a long-term bet on space exploration and innovation, others question its sustainability and profitability. The Nasdaq 100 inclusion underscores its market significance, but the recent dip highlights ongoing uncertainties.