SpaceX investors have gone from celebration to outright concern during its first month as a public company.
Investors were excited when shares of the company co-founded and led by Elon Musk became available for purchase by individuals for the first time on the public stock market on June 12.
The company set the price per share at $135, but on the first day, the price immediately jumped to $150, rose to $176, and closed at $160.95.
This cemented SpaceX as the largest IPO of all time.
The following week, the stock rose even further, hitting an intraday high of $225. This means it has surpassed Amazon and Microsoft in overall market value.
“With Elon Musk, you get people excited about whatever company he touches,” said Keith Snyder, an analyst at investment research firm CFRA. “But it was also the first time that people felt they could invest in something that was being marketed as an AI play.”
Willie Lee, an investor at Neosteller, which helps individual investors put money into private companies, agreed that the excitement surrounding IPOs is largely driven by artificial intelligence (AI).
“Everyone saw SpaceX as an AI story,” he said.
SpaceX acquired Musk’s AI startup xAI earlier this year and recently renamed it SpaceXAI., external Best known for its controversial chatbot Grok, it has begun leasing data center capacity to other tech companies.
