SpaceX down six days as space stock loses nearly $1T

SpaceX shares have fallen for six straight days and shed nearly $1 trillion in market value since peaking near $211 shortly after their June IPO, according to CNBC. The space stock has dropped below its $135 IPO price toward about $123, even as Wall Street banks still publish bullish targets.

Key Takeaways

• CNBC reports SpaceX is down six straight sessions and has lost almost $1 trillion in market cap since its post-IPO peak.
• Fortune notes shares slid below the $135 IPO price and toward roughly $123 after peaking near $211 within three days of trading.
• Underwriter analysts still clustered around bullish targets — median about $225 — even as prices fell.
• Investor Jeremy Grantham called SpaceX the “craziest IPO in the history of man,” citing lofty valuation and AI ambitions.
• Volatility in a newly public space name is a reminder to size speculative bets carefully within a diversified plan.

What happened to SpaceX stock this week?

According to a CNBC Fast Money segment, SpaceX has been down for six straight days and has lost almost $1 trillion in market capitalization since its peak. That framing captures how quickly sentiment flipped after one of the most watched public debuts in years.

Fortune reported that days after analysts at more than a dozen banks rolled out almost uniformly bullish price targets, the shares tumbled below their $135 IPO price for the first time, then kept falling toward $125. The outlet later cited a recent drop to about $123.

The scale of the reversal matters because the Nasdaq debut in June was described as the largest in U.S. history. Shares that peaked near $211 within three days of trading had, by Fortune’s account, shed nearly 60% of their value from that high — leaving even early allocation winners facing a loss if they sold into the slide.

Why did Wall Street still issue florid space targets?

Fortune’s Shawn Tully documented a wave of research notes that arrived roughly 25 days after trading began — the typical window for underwriter coverage. Early in July, analysts at eighteen of the banks that handled the IPO issued outlooks that were almost uniformly bullish.

Among banks that set 12- to 18-month targets, Raymond James published the highest call at $800, while Stifel was lowest at $190. The median across 18 banks that set targets was $225. Morgan Stanley stood out with a $300 target and “overweight” stance; Bank of America praised SpaceX for “paving the superhighway to the stars,” while Morgan Stanley called its ecosystem “AI’s final frontier.”

University of Florida IPO expert Jay Ritter told Fortune that analyst targets often look mechanical: start from the recent price and add a large percentage similar to peers. When most forecasts hit around July 7, SpaceX had closed near $160 on July 6 — already implying a roughly $2 trillion valuation. Hitting the median $225 target would have pushed the company toward about $3 trillion by late 2027, Fortune calculated.

Yahoo Finance separately summarized overlapping buys from firms such as Goldman Sachs ($205), JPMorgan ($225), and Bernstein ($239). Those notes arrived as the public market was already testing how much optimism investors would pay for a money-losing space and AI story.

Is SpaceX still a buy after the selloff?

That is the top question for anyone watching wealth-building headlines. Bulls point to strategic wins and index demand. Yahoo Finance cited CNBC reporting on a deal in which Alphabet would pay nearly $1 billion per month to rent computing power from SpaceX, and Reuters commentary that Elon Musk has projected $1 trillion in revenue by 2030.

Index flows may also matter in the short run. On July 7, SpaceX joined the Nasdaq-100 under preferential “fast-track” rules. Yahoo Finance relayed JPMorgan’s estimate that the status alone could bring in $4.3 billion as funds become forced buyers — a dynamic GMO’s Jeremy Grantham said could create more demand than sellers near term.

Skeptics are louder on fundamentals. Fortune noted SpaceX lost $4.9 billion on revenues of less than $19 billion in the period cited in its analysis. MarketWatch reporting summarized by Yahoo Finance said Morgan Stanley’s own work suggested the company may not be cash-flow positive until 2035. Morningstar has described the stock as “significantly overvalued,” with uncertainty around xAI’s long-term profitability.

Grantham, in a Morningstar interview covered by Yahoo Finance, labeled SpaceX the “craziest IPO in the history of man.” He mocked prospectus ambitions such as space tourism and asteroid mining and called related AI assets “third-rate” versus leaders like OpenAI and Anthropic. He said he was about 90% certain of a crash long term, while conceding index buying could still lift the price for a while.

Morgan Stanley’s Adam Jonas cautioned on CNBC that investors used to Tesla should expect a “volatile ride” and decide “whether the juice is worth the squeeze.” That framing fits passive-income and portfolio discipline better than chase-the-headline trading.

What should long-term investors do with a volatile space IPO?

For readers of Wealth Hacks & Passive Income, the SpaceX swing is less a tip to buy the dip and more a case study in position sizing. A name that can lose nearly $1 trillion in market cap from peak while still carrying multi-trillion bull-case targets is, by definition, speculative.

Practical filters drawn from the reporting: separate short-term index and narrative flows from long-term cash generation; treat underwriter price targets as marketing-adjacent opinions, not guarantees; and avoid concentrating a passive-income plan in a single post-IPO space bet until earnings visibility improves.

Diversified index funds, cash-flow assets, and clear risk limits will not make SpaceX go up — but they can keep one spectacular IPO from rewriting your entire financial plan when the stock falls back to earth.