SpaceX $25B Bond Sale Triggers 32% Post-IPO Stock Collapse
SPCX•SpaceX’s June 12 IPO surged from its $150 opening to a $225.64 intraday high before a 32% drop erased over $600 billion in value by June 26. The company’s $25 billion bond sale, priced at 1.4% over Treasuries, triggered bubble warnings and a 19% five-day stock slide.
1. Rapid Post-IPO Decline
SpaceX opened at $150 on June 12, surged to a $225.64 intraday peak by June 16, then reversed course; as of June 26 the stock trades near $152, marking a 32% decline from peak and a 19% drop over five days.
2. $25 Billion Bond Offering
The company’s bond sale attracted $89 billion in orders and was upsized from $20 billion to $25 billion to retire a $20 billion bridge loan; the 2036 tranche priced at 1.4 percentage points above US Treasuries, 0.4 wider than similarly rated BBB peers.
3. Bubble Warning and Market Impact
Allianz CIO Ludovic Subran labeled the rally “bubble territory” just 14 days after the IPO, sparking concerns across the broader IPO pipeline and influencing OpenAI to postpone its planned listing to 2027 in response to weakening retail demand.
4. Analyst Ratings and Valuation
Susquehanna initiated coverage with a Neutral rating and $170 price target, while Morningstar’s best-case fair value is $169, both flagging the stock as significantly overvalued at its recent peak.
