SpaceX’s historic IPO (Initial Public Offering) has taken the stock market by storm. The bullish momentum around the company’s stock, SPCX, seems to be draining liquidity from the larger stock market. The S&P 500 was down 0.38%, wiping out early $240 billion. The Nasdaq, on the other hand, was down 0.52%, wiping out about $200 billion. It appears all the money is being pulled into SpaceX (SPCX). The development begs the question of whether SpaceX (SPCX) can sustain the inflows, or will the stock face a price dip soon.
Will SpaceX Stock Price Dip?
Retail players are likely following the money. A large number of investors are also likely victims of FOMO (Fear Of Missing Out). While SpaceX (SPCX) has set record standards for how high an IPO can go, there are fears that the stock could see a correction soon.
Some have compared SpaceX’s (SPCX) IPO to that of Tesla (TSLA) in 2010. When the electric vehicle manufacturer went public 16 years ago, the stock price saw a meteoric surge. However, TSLA faced a near 70% crash in the following months. SpaceX (SPCX) could also follow a similar trend. We could see a redistribution of capital once the hype cools off.
Why It May Not
SpaceX is a rocket manufacturing company that also has its fingers in the AI space. The company had acquired fellow Elon Musk-owned xAI earlier this year. SpaceX’s double outlook could be an attractive buy for investors who fear an AI bubble.
Also Read: SpaceX Stock Price Prediction: What $1,000 Could Be Worth in 2027
SpaceX’s recent acquisition of Cursor could also help sustain the stock price rally. SpaceX has announced that it is buying the popular AI coding agent for $60 billion in an all-stock deal. The move aims to further strengthen SpaceX’s AI ventures. The Cursor acquisition will give xAI a stronger hold in AI coding.