In the weeks following its dramatic IPO, Elon Musk’s SpaceX has yet to find stable ground.
After shooting up to an all-time high of over $225, shares of the rocket company have swung wildly back down to Earth, betraying plenty of uncertainty over the company’s dizzying, north-of-$2-trillion market cap. After all, the company is burning through billions of dollars in cash, and its path to profitability remains as uncertain as ever.
After days of rallying north of the $170 mark, shares took a beating on Wednesday, sliding over seven percent to just under $160, once again approaching its symbolically significant IPO price of $150. As of Wednesday afternoon, the company’s shares are trading almost 30 percent lower than their all-time high.
The drop could be a sign that investors are still trying to make sense of SpaceX’s enormous new valuation, a stunning price to sales ratio of over 115. Given the absence of profits, investors are effectively betting on Musk’s grandiose vision of a future filled with orbital AI data centers and colonies on the Moon and Mars, lofty goals that could take decades to come to fruition — if ever.
