Shares of SpaceX, based at Kennedy Space Center in Brevard County, fell 1.9% to $151.60 Tuesday, extending a three-day selloff that erased more than $600 billion from its market value. The company's stock dipped below $150 for the first time since its April 6 IPO, when it opened at $135. The valuation has since fallen from a peak of $1.99 trillion.
The decline follows a volatile first week as a public company, during which SpaceX briefly surpassed Microsoft and Amazon in market value. Nic Puckrin, founder of Coin Bureau, said the swings are common for companies with small public floats. SpaceX's shares remain 10% above their IPO price despite the recent drop.
The company announced a bond offering this week as it navigates its first months on the public market. A Reuters analysis of 50 high-valuation IPOs over the past five years found investors would have been better off buying S&P 500 index funds three-quarters of the time than investing in big IPOs.
Tech stocks broadly declined, with Nasdaq futures pointing to further losses. SpaceX's troubles come as the broader sector faces renewed investor caution after a turbulent start to the year. The company's launch complex at Cape Canaveral remains active, though its financial performance has drawn scrutiny from analysts and investors.