SpaceX Stock Drops Below $110 Ahead of August Share Unlocks

Space Exploration Technologies stock has fallen to a new all time low of below $110. The shares dropped to about $108.78 before a slight rebound to $109.79. This decline shows a steady cooling off period following the initial public offering hype.

Bearish sentiment is growing because of upcoming share unlocks in August. More than 911 million shares will soon become available for trading, which could bring extra selling pressure from early investors. The company also faces scrutiny over its high valuation, boasting a market capitalization of roughly $1.5 trillion against previous revenue figures.

Despite the short term correction, Wall Street analysts maintain a positive long term outlook. Morgan Stanley recently reiterated a Buy rating with a $300 price target, while Ark Invest continues to buy the dip. Analysts point to artificial intelligence investments and strong growth potential as reasons the current downward trend might not last long.