SpaceX shares dropped below their IPO opening price this week, closing at $148 on Wednesday after a two-day decline following the company’s inclusion in the NASDAQ-100 index. The stock touched an intraday low of $145.20 before recovering some losses. The decline came as rival Blue Origin moved to raise $10 billion in outside capital at a reported $130 billion valuation, intensifying competition in the space launch and satellite connectivity markets.
SpaceX’s IPO opened at $150 per share in June after the company raised $85.7 billion, including the greenshoe option. The stock reached a closing high of $201.80 on June 16 but has since pulled back. Analysts attribute the decline to a post-IPO adjustment phase, where early demand cools and investors test valuation support. Despite the drop, most analysts remain bullish, with price targets above $200. Morgan Stanley rates the stock overweight with a $300 target, while Bernstein, RBC, and UBS initiated coverage with positive ratings.
Analysts point to SpaceX’s leadership in reusable rockets, launch services, and Starlink satellite internet, as well as potential growth from AI tools, orbital data centers, and broader space infrastructure. Morgan Stanley’s Adam Jonas described SpaceX as more than a rocket company, noting its ability to connect launch economics, satellite networks, and AI infrastructure into a single business model.
Meanwhile, Blue Origin is seeking outside funding for the first time in its 25-year history. The Jeff Bezos-backed company is raising $10 billion, including $4 billion from Coatue Management, $4 billion from other large investors, and $2 billion from Bezos himself. The raise follows a difficult period that included a New Glenn rocket explosion during a static engine test that damaged its only launch pad. Bezos told CNBC in May that the company has enough visibility into its future to bring in outside investors. Blue Origin also plans to operate TeraWave, an enterprise satellite connectivity service, using New Glenn rockets to launch satellites into medium and low Earth orbit.
Amazon is preparing its own satellite internet service, Amazon LEO, which would compete with Starlink in consumer connectivity, but TeraWave targets large business customers. The funding signals Blue Origin’s push to strengthen its capital base as competition in launch services and satellite internet intensifies. SpaceX still leads in satellites in orbit, but Blue Origin is working to build a stronger position across rockets and connectivity.
Leave a Reply