SpaceX Stock is Falling -- Should You Sell or Buy the Dip?
SpaceX stock is reminding investors that even the hottest companies aren’t always a sure thing.
After skyrocketing in its first two full days as a public company, shares of Elon Musk’s space exploration and AI company took a tumble. SpaceX fell 16% on June 22, according to Yahoo Finance, marking a third consecutive day of losses following declines of 5% and then 3.6% the week before.
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The volatile stock opened trade on June 23 at 159.09 but quickly fell again minutes later.
A Fast Rise and Fast Fall?
SpaceX debuted on June 12 with shares priced at $135, and investor enthusiasm almost immediately managed to push the stock’s market value above Amazon and even – briefly – Microsoft, making SpaceX one of the most valuable companies in the world.
That rally, though, significantly cooled. The recent selloff has erased many of the gains celebrated by investors who bought shares after the IPO. In fact, by the end of IPO’s first week, many of those investors had seen nearly all of their profits disappear.
Despite this, the stock remained up 37% from its IPO price at its June 18 market close, and its initial success made Musk the world’s first trillionaire.
So, What Happened?
The decline comes as investors reassess SpaceX’s fundamentals following its explosive debut.
SpaceX reported a net loss of $4.9 billion in 2025, and it lost another $4.28 billion during the first quarter of 2026. At the same time, the company announced a senior unsecured note offering and revealed it held $100.8 billion in cash/cash equivalents as of June 19.
While bullish investors may look past SpaceX’s losses and focus instead upon the long-term growth and ambitions surrounding Musk’s company, for others, the recent drop highlights the risks of buying into a stock after a major IPO rally.
Should You Sell or Buy the Dip?
“I wouldn't touch SpaceX, nor would I recommend that anyone other than the most aggressive investors do so,” warned Robert R. Johnson, PhD, CFA, CAIA, professor of finance, Heider College of Business, Creighton University. "It is too speculative for me, or most value investors, to put a price range target over the next 12-24 months. A typical value investor would say that it is wildly overvalued."
Johnson also said the valuation is not necessarily based on the viability of the stock, but "the narrative that Elon Musk is a genius and that the firm will ultimately be incredibly successful."
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In short, Johnson suggested SpaceX is simply too risky to invest in rather than any substantive success that can be relied on.
However, Lou Whiteman, a contributing analyst for The Motley Fool who specializes in aerospace companies and technologies, has a less stringent view.
“For investors intrigued by the potential and who understand the risks of buying highly valued, money-losing companies, now is as good a time as any to buy into the IPO,” Whiteman said. “But both new and existing investors need to understand that stocks like SpaceX tend to be volatile, which means they swing higher and lower more than the broader markets.”
Most importantly, Whiteman suggested, it’s important to focus on the long-term.
“If SpaceX successfully delivers on its goals over the next five to ten years, investors are likely to do well whether they bought in at $225 or $150. Similarly, if SpaceX fails to deliver, the $150 per share price (which still implies a nearly $2 trillion valuation) is unlikely to shield investors from losses."
The Bottom Line
The recent SpaceX selloff underlines the challenge of investing in high-profile growth stocks – the company’s future potential might be enormous but so is its uncertainty. For everyday investors, the primary question isn’t whether or not SpaceX will bounce back next week or next month; what this all comes down to is whether you believe the company can deliver on its lofty ambitions over the next decade.
If your answer is yes, then short-term volatility may not matter as much. If your answer is no, then the recent decline should serve as a reminder that even the most space-bound stocks can come crashing back to Earth. No matter what, conferring with a financial advisor on a volatile purchase is recommended before making any decisions.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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