SpaceX (SPCX) shares tumbled 5% on Wednesday, continuing a post-IPO pullback that has erased much of the gains from a three-day rally earlier this week. The decline marks a sharp reversal from the euphoria surrounding the company's largest-ever public offering, with the stock now down roughly 12% from its peak.
The retreat comes despite at least two major Wall Street firms issuing bullish price targets on the stock, according to Barron's. Analysts remain optimistic about SpaceX's dominant position in satellite internet and launch services, but the initial wave of IPO momentum appears to be fading as traders take profits and reassess valuations.
The broader market showed no clear directional cue, with the S&P 500 and Nasdaq hovering near flat. The pullback in SpaceX weighed on other high-growth space names, though the sector overall held relatively steady. Some financial advisers cautioned retail investors to weigh the company's long-term prospects against its current premium pricing.
Despite the recent slide, institutional sentiment remains broadly positive, with several analysts reiterating buy ratings. However, skeptics point to the steep valuation—at more than 100 times trailing revenue—as a potential headwind if near-term earnings fail to justify the price. The coming weeks will test whether the stock can stabilize or if the selloff deepens.