• SpaceX shares fell 2.7% in the latest session, extending a 23% decline over the past three trading days.
  • The pullback follows a blockbuster IPO that briefly valued the company above established tech giants, with analysts citing limited free float and looming lock-up expirations.
  • Investors are reassessing valuations amid broader market sensitivity to tech stocks and ongoing concerns about Starlink monetization.

Shares of SpaceX (ticker: SPACX) dropped 2.7% on Thursday, adding to a sharp reversal that has wiped out about a quarter of the company's market value in just three sessions. The decline comes after a stunning post-IPO rally that saw the stock surge to levels briefly surpassing some of the largest technology companies, driven by retail enthusiasm and a fully exercised greenshoe option that amplified initial price action.

According to people familiar with the matter, the recent slide is partly attributed to profit-taking and positioning ahead of upcoming lock-up expirations, which could release additional shares into the market. Analysts have flagged that SpaceX's free float remains relatively small, making the stock susceptible to sharp moves. “The post-IPO froth was extreme, and now we're seeing a reality check as supply dynamics shift,” one analyst said.

The broader market context has also weighed on SpaceX. Growth and tech names have been sensitive to valuation reassessment amid shifting rate expectations. The company’s valuation, now in the hundreds of billions, hinges heavily on future revenue from Starlink satellite internet, commercial launches, and government contracts—areas where profitability timelines remain uncertain.

Efforts to reach SpaceX for comment were unsuccessful. The company has not announced any new leadership changes or corporate actions in recent days.

In a pattern familiar to high-visibility IPOs, the stock remains highly volatile, with intraday swings of 5% or more becoming common. Some investors see the pullback as an entry point if SpaceX demonstrates progress on Starlink monetization or milestones in its aerospace programs. However, without a clearer path to sustained profitability, the stock may face continued pressure.

Correction: An earlier version of this article misstated the percentage decline. The correct figure is 2.7% in the most recent session.