SpaceX shares dropped below their $135 initial public offering price for the first time on Wednesday, reflecting growing investor skepticism regarding the company's heavy investment in artificial intelligence.

Key Points

• SpaceX stock fell 2.1% to trade below its $135 IPO price, marking an 11% decline since its June 8 debut.
• The company allocated $7.7 billion to AI-related capital expenditure in the first quarter, representing 75% of its total spending.
• SpaceX acquired Elon Musk’s startup xAI in February and plans to deploy orbital data centers by 2028 to support AI infrastructure.
• Despite the recent price drop, 80% of analysts maintain a "buy" or "overweight" rating with a consensus price target of approximately $247.
• Elon Musk’s net worth has decreased to an estimated $856.8 billion following the stock's decline from its post-IPO peak.

Why it Matters

This shift in investor sentiment highlights a broader market transition from speculative AI enthusiasm toward a more rigorous evaluation of company fundamentals and capital efficiency. The performance of SpaceX serves as a critical test case for whether massive infrastructure investments in space-based computing can eventually deliver the long-term returns promised to shareholders.