SpaceX shares slide 18% to $2T market cap as bonds lose $305M
SPCX•Shares of SpaceX have tumbled 18% in its inaugural trading week, dragging market capitalization from a $2.5 trillion peak to roughly $2 trillion. A $25 billion bond sale that drew $90 billion in orders is trading at a $305 million loss, raising investor concerns over cash needs.
1. Share Decline Dents Market Capitalization
SpaceX shares dropped 18% in their first full trading week, pulling market cap down from $2.5 trillion to about $2 trillion as the stock flirted with its IPO price.
2. Bond Offering and Paper Losses
A $25 billion bond sale, upsized from $20 billion after $90 billion of demand, is trading at a $305 million loss versus benchmark Treasuries, prompting questions over near-term funding strategy.
3. Valuation Concerns and Analyst Caution
A brokerage initiated coverage with a Hold rating, highlighting a 95x price-to-sales multiple and anticipating multi-year time needed for valuations to normalize, while some investors warn of bubble risks after rapid capital raises.
4. Consumer Mobile Service Plans
The company is exploring a Starlink-based wireless service selling plans directly to consumers, aiming to build recurring revenue streams to support its $2 trillion valuation and growth ambitions.
