SpaceX investors are dealing with volatility amid big swings

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roller coaster. That’s probably the most accurate way to describe it. space x Two weeks after opening as a public company.

Stocks soared for several days in a row following the record IPO, briefly overtaking both countries. Amazon and microsoft In terms of market capitalization, it has increased over 60% from its initial share issue price of $135.

However, the good times did not last. Fear crept into the market with daily drops of 5% and 4%, followed by a 16% decline. What followed were days of stability, with single points moving in either direction.

This volatility highlights the whip-like nature of story-driven stocks.

A founder with lofty sci-fi ambitions, “outrageous” media coverage, and a cult-like following created a frenzy of excitement around the company.

“Most stocks trade based on how their earnings multiples compare to other comparable stocks,” Gil Luria, head of technology research at DA Davidson, told me.

“Elon Musk’s company doesn’t really do that,” he added, adding that Musk’s ventures are more about expectations.

”tesla “We’re trading more robotaxis and Optimus than we are selling cars, and SpaceX is trading more promises of Mars exploration, or at least data centers in space,” Luria said.

Individual investors bought into this positive narrative in droves.

Viraj Patel, global macro strategist at Vanda, said SpaceX “embodies many of the attributes that have historically resonated with retail investors, including an innovative technology story, a bold vision for the future, a celebrity founder, and unparalleled media attention.”

In the first five trading sessions, retail investors bought a net $405 million in SpaceX stock, the largest debut ever for a retail IPO, according to research firm Vanda.

“For SpaceX, ‘Elon worship’ attracts more retail investors and adds extra hype that could significantly increase volatility, as we’ve seen with Tesla’s stock price,” Mike Cope, chief investment officer EMEA at Morningstar Wealth, told me. Morningstar analysts wrote that SpaceX’s stock was worth less than half of its $1.75 trillion target in the run-up to SpaceX’s IPO, which caused a stir.

Kyle Rodda, senior market analyst at Capital.com, said the first few days of public markets were bullish, but fundamentals became a big driver of prices, creating a “hangover.”

Mr. Musk has been touting very strong revenue growth over the next few years in a somewhat predictable fashion. On June 14, he said the company’s 2030 sales “could reach about $1 trillion.”

This would be a significant increase from SpaceX’s $18.7 billion in revenue in 2025. The company posted a net loss of $4.9 billion in 2025, and a $4.28 billion loss in the first quarter of this year.

In the long term, SpaceX faces two major challenges in the market, Cope said.

“Firstly, the supply of equity will increase as early investors reduce their exposure and monetize their gains,” he said.

“Second, the current price is too high given the great uncertainty surrounding the company’s prospects and the company’s starting point with large deficits and large capital investment requirements.”

Despite this, so far very few people are willing to bet on the stock.

Michael Burry of “The Big Short” fame said on June 16 that he has no position in SpaceX, questioning the company’s nearly $3 trillion market capitalization but arguing that the options to bet on the company’s stock remain too expensive.

SpaceX has also seen interest from short sellers, many of whom remain reluctant to bet on Mr. Musk.

Only time will tell how far the story will drive SpaceX’s stock price. Either way, expect more twists and turns on the roller coaster.

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