The stock of SpaceX keeps plummeting. Additionally, Elon Musk’s space exploration company’s stock price dropped below its launch price for the first time.
It’s not just SpaceX stock, either. All tech stocks are declining today.
Following its initial public offering (IPO) at $135 per share, SpaceX’s stock dropped below $150 on Tuesday. This implies that on Tuesday morning, every SpaceX investor who purchased after was losing money.
SpaceX’s shares has dropped for the fourth straight trading day. Days after SpaceX went public, Musk’s business announced a $60 billion acquisition of the AI coding agent Cursor. Since then, the stock has decreased daily.
But SpaceX is by no means the only tech stock that is having difficulties right now.
Tuesday also saw declines in Alphabet, Amazon, Tesla, and Apple. The company that has profited the most from the AI boom, Nvidia, is down more than three percent.
Advanced Micro Devices and Intel, two chipmakers, had declines of 5.2% and 6.8%, respectively. Memory chip manufacturers’ stock also dropped, with Western Digital, Micron, SanDisk, and Seagate all seeing declines of up to 11%.
According to studies, there are indications that investors have some misgivings about AI.
The current health of the global economy, in addition to fears about interest rate hikes, has also contributed to the selloff, CBS writes.
However, a lot of AI startups have not yet shown investors that the technology will live up to the expectations.
Companies like OpenAI are still having trouble making a sizable profit.
According to recently disclosed records, OpenAI lost almost $38.5 billion in 2025.
The excitement around SpaceX’s largest-ever initial public offering (IPO) may just indicate that everyone who was interested in investing has already done so, which could account for the company’s abrupt and prolonged decline.
Musk’s AI startup, xAI, was purchased by SpaceX. Giants like Microsoft and Google are still heavily investing in AI.
However, tech stocks will probably continue to decline if the sector doesn’t start producing tangible returns for investors.
Source: newsthemegh.com