{"slug": "spacex-shares-fall-for-first-time-since-blockbuster-debut", "title": "SpaceX shares fall for first time since blockbuster debut", "summary": "SpaceX shares fell as much as 4.7% on Wednesday, snapping a three-day rally that had pushed the stock nearly 50% above its $135 IPO price. The decline threatens to drop the company below Amazon in market value rankings, with analysts attributing the volatility to low float and potential rotation from Tesla into SpaceX.", "body_md": "**Getting your**\n\n[Trinity Audio](//trinityaudio.ai)player ready...**By Carmen Reinicke, Bloomberg**\n\n[SpaceX shares](https://www.mercurynews.com/2026/06/11/a-look-at-the-spacex-ipo-by-the-numbers-2/) declined for the first time since its [record initial public offering](https://www.mercurynews.com/2026/06/15/spacex-shares-second-day-trading-jump/), snapping a three-day rally that vaulted it past Amazon.com Inc. as the world’s fifth-largest stock.\n\nShares of Elon Musk’s rocket and AI firm fell as much as 4.7% Wednesday, erasing a gain that had reached 6% earlier in the session. The decline puts the stock on track to snap a three-day winning streak that had pushed shares nearly 50% above their $135 IPO price. It also threatens to drop the firm back below Amazon in the rankings of most valuable companies.\n\n“Long story short, I think this is just noise so far. If we were to see a big down day, I think that’d be a different discussion,” said Michael Monaghan, partner and portfolio manager at Founder Funds in Dallas, which holds shares of SpaceX. “If it really got hit more, we’d probably add,” he said.\n\nSome of the volatile intraday trading seen in shares of SpaceX can be attributed to low float, which might also be giving its stock price a boost. There is a relatively small portion of SpaceX shares available to trade, with only about 4.2% of total stock available on day one. As lockups keeping insiders from selling expire in the coming months, it could add downside pressure to shares.\n\nBefore Wednesday’s decline SpaceX had been the most-bought stock by retail investors each day since its IPO, matching the combined buying of Nvidia Corp., Alphabet Inc., Amazon, Meta Platforms Inc., and top exchange traded funds tracking the Nasdaq 100 and S&P 500 indexes, according to data from Vanda Research. Over the same period, Tesla Inc. has seen roughly $61 million in net selling, the data show.\n\n“Perhaps we’re seeing a rotation from one Elon-linked trade into another, with SpaceX increasingly viewed as the cleaner AI & tech exposure,” Vanda wrote in a note.\n\nIf SpaceX’s gain from its IPO price holds through its first five trading days, it will have easily beat both the median and average one-week returns of 30 major US tech IPOs in the past 15 years, according to Truist Advisory Services. The data also showed that while 57% of those IPOs produced positive returns after one week, one month and three months relative to their first-day close, only 43% were positive over longer six and 12 months periods.\n\nThe choppy trading comes as investors look ahead to key events for the macroeconomic and geopolitical backdrop. Wednesday marks the Federal Reserve’s first rate decision under new chairman Kevin Warsh, spurring extra focus on communication style in the press conference.\n\nTuesday also marked the start of trading for SpaceX options contracts on some exchanges, an event that could stoke even more volatility in the stock. More than 1.7 million lots of options traded hands Tuesday.\n\nWhile the majority of the options flow was in calls, instruments used to bet on a stock going up when they are bought, the flow became more balanced as the day went on. By the close on June 16, 44% of the options traded were puts, which can be used as insurance against a stock falling when purchased, in a sign that some investors are pessimistic about the Musk-led rocket maker’s valuation.\n\nInvestor Michael Burry, made famous by The Big Short, wrote in a Tuesday Substack post that so far, put options on SpaceX — a bearish bet — are too expensive, so he hasn’t bought any at the moment.\n\nThere’s also the possibility for index inclusion in the coming weeks. Nasdaq Inc. changed its rules to allow faster entry to shares of huge companies like SpaceX, which would force funds that track indexes such as the Nasdaq 100 to buy the stock. S&P Dow Jones Indices decided not to change its rules to allow new IPOs faster entry, meaning SpaceX won’t be immediately included in the S&P 500.\n\nForced buying would support the stock price. In the interim, however, some investors may be content to stay on the sidelines of SpaceX knowing that they’ll hold a passive investment in shares once it’s added to indexes.\n\n“It could play into the fact that some investors are saying, well, I’m not going to panic because if you’re able to then go ahead and just track that index with an investable instrument, you’re getting exposure,” said Shelby McFaddin, a portfolio manager with Motley Fool Asset Management.\n\n–With assistance from Subrat Patnaik, Bernard Goyder and Anthony Hughes.\n\n(Updates trading details throughout.)\n\nMore stories like this are available on [bloomberg.com](https://www.bloomberg.com)\n\n©2026 Bloomberg L.P.", "url": "https://wpnews.pro/news/spacex-shares-fall-for-first-time-since-blockbuster-debut", "canonical_source": "https://www.mercurynews.com/2026/06/17/spacex-shares-fall-after-debut/", "published_at": "2026-06-17 16:17:44+00:00", "updated_at": "2026-06-17 16:58:07.533797+00:00", "lang": "en", "topics": ["ai-startups", "ai-products"], "entities": ["SpaceX", "Amazon.com Inc.", "Elon Musk", "Founder Funds", "Michael Monaghan", "Vanda Research", "Tesla Inc.", "Kevin Warsh"], "alternates": {"html": "https://wpnews.pro/news/spacex-shares-fall-for-first-time-since-blockbuster-debut", "markdown": "https://wpnews.pro/news/spacex-shares-fall-for-first-time-since-blockbuster-debut.md", "text": "https://wpnews.pro/news/spacex-shares-fall-for-first-time-since-blockbuster-debut.txt", "jsonld": "https://wpnews.pro/news/spacex-shares-fall-for-first-time-since-blockbuster-debut.jsonld"}}