SpaceX went public for less than a month and already fell below the issue price! Is this an opportunity or a trap?❓

On June 12, SpaceX completed what is the largest IPO in history at an issue price of $135. In the first week, it surged to $200+ and reached a market cap of nearly 3 hundred billion! In the end, the honeymoon period only lasted 11 days: on June 22, it plunged 16% in a single day, and by July it had already fallen below the issue price. The latest range is $133-$140.

🤯 Here are a few key data points:

Short interest makes up 5-7% of the float. The cost of borrowing has already come down, and shorts can open positions with ease!

At the time of the IPO, the P/S ratio was as high as 93x—far above Nvidia and Amazon!

Immediately after the IPO, it issued $25 billion in bonds. The bond prices moved close to junk-level, and the market directly “got pissed off.”

How does Wall Street explain it? Valuation was too expensive, the lock-up/unlock cycle is coming, the AI narrative hasn’t yet translated into realized profits, and on top of that there’s macro pressure from interest rates—so profit-taking and position trimming are escaping frenziedly.

My personal view, briefly:
In the short term, volatility is likely to stay weak; unlock and supply pressures are still there. But SpaceX’s fundamentals remain rock-solid—Starlink growth, Starship reusability, and AI compute power synergy. Musk’s execution has never been lacking!
This isn’t a crash; it’s a normal shakeout after an overvalued run.
But don’t go all in—controlling position size is the most important!

Investing involves risk; make rational decisions!