SpaceX's mega post-IPO rally has hit the skids.
Shares in Elon Musk's rocket company dropped for three consecutive days after an opening boom that saw the stock climb more than 50% in its first few days of trading.
That run looked set to continue at market open on Tuesday, with the stock falling 2.2% to just above $150, down more than 30% from the intraday high of $225 per share it hit last Tuesday, and erasing around $400 billion from its closing market capitalization that same day.
By late morning, SpaceX was in the green, trading 1.6% higher at $157 per share.
SpaceX, which trades under the ticker SPCX, went public in the largest IPO in history earlier in June, raising an initial $75 billion. It then announced that investors underwriting the IPO had exercised an option to buy an extra $10 billion of stock, boosting the total raised to over $85 billion.
Shares were priced at $135 for the IPO, but on their first day of trading, they opened at around $150. The stock's fall over the past few days, therefore, means that any investor who bought after the IPO has only made a small gain.
On the day of SpaceX's IPO, the company had a valuation of around $1.8 trillion. That valuation then surged, briefly exceeding $2.7 trillion and making SpaceX more valuable than both Microsoft and Amazon. On Tuesday, June 16, the company closed with a market capitalization of $2.4 trillion.
Shortly after the open on Tuesday, the company's market cap was $1.99 trillion, roughly $200 billion above its opening valuation.
SpaceX's fall is part of a broader market sell-off that saw South Korea's Kospi plummet 10% and the Nasdaq open 2% lower.
"As surely as night follows day, SpaceX's reversal has arrived, bringing the shares back down to Earth and causing euphoric sentiment to sputter," Chris Beauchamp, chief market analyst at IG, wrote in a morning email.
"And just as inevitably, the losses are of such a size that they cannot be ignored by the broader market. A chill wind is blowing through stock markets around the globe as investors watch the selling."
