SpaceX sheds 534 trillion won in market value despite flurry of price-target hikes

[Financial News]  

SpaceX, Elon Musk’s rocket and artificial intelligence (AI) company, plunged again on the 30th (local time). As the AI trade sank amid earnings shocks at Alphabet Inc., Amazon.com, Inc. and Intel, SpaceX shares also tumbled in tandem.
Yahoo Finance reported that, based on the 5% plunge that day, SpaceX’s market capitalization had fallen by more than $400 billion (about 534 trillion won) from its peak on the 6th. Its market cap, which had topped $2.3 trillion on the 6th, is now below $2 trillion.
SpaceX posted results that beat market expectations in its first quarterly earnings report since its initial public offering (IPO) on the 20th, sending its shares up nearly 8% the following day.
Buoyed by the strong results, Wall Street analysts moved one after another to raise their price targets for SpaceX.
But seemingly scoffing at Wall Street’s optimistic outlook, the shares subsequently turned lower.
The expiration of the share lockup added to the pressure. The lockup on about 1.3 billion shares expired on the 22nd, meaning those shares could have hit the market all at once. Even so, SpaceX held the psychologically important resistance level of $140. The level gave way on the 30th. Since the 8% surge on the 22nd, SpaceX has shed more than $250 billion in market value.

[email protected] Reporter Song Kyung-jae[email protected] Song Kyung-jae Reporter