$SpaceX (SPCX.US)$ On Friday, the stock price of Space Exploration Technologies Corp (SPCX.US) saw a significant decline, dropping 4.17% at one point during the trading session, with the latest quote at $145.81, further down from the previous closing price of $152.16. As a result, the company's total market capitalization has fallen below the $2 trillion mark, with a cumulative decline of nearly 9% for the week.
Market analysis suggests that this stock price correction is related to investors reassessing the company's excessively high valuation. Although SpaceX was recently included in the Nasdaq 100 Index due to its large market cap, which triggered a wave of passive buying interest, the stock faced a nearly 7% drop on the first day of its official inclusion in the index, indicating that the index effect did not sustain the stock price.
On the fundamental side, the company's founder Elon Musk has recently outlined an ambitious business blueprint for the market, including plans to deploy a "space AI data center" in two years, land on the moon within three years, and reach Mars within five years, as well as the initial concept of establishing a lunar city within the next decade. While these grand narratives open up significant long-term imagination for SpaceX, they also highlight the substantial gap between its vision and actual performance.
Data shows that even though the stock price has retreated from its peak during the initial public offering, SpaceX's current market value is still over 100 times its projected revenue for 2025. Such a high valuation multiple requires extremely strong short-term performance growth to support it, and whether it be the space AI data center or Mars colonization, there remains a considerable time frame before they can generate scaled commercial returns. At the current price level, market concerns are rising regarding whether its short-term growth can match the high valuation, leading some funds to choose to take profits.
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