SpaceX Stock Plunge Wipes Out $600 Billion After Cursor Deal Spooks Investors
Key takeaways
- Oppenheimer analyst Timothy Horan applauded SpaceX’s deal for Cursor in a note on Thursday, claiming the acquisition could boost its shares to $250 by the end of the year, up from an earlier projection of $190.
- A further decline in SpaceX shares reduced CEO Elon Musk’s net worth by $67.8 billion to about $1.2 trillion, according to Forbes’ estimates.
- SpaceX shares skyrocketed 50% above its $135 IPO price through its three-day streak, boosted by record-setting investor demand.
Topline. A selloff in Space X shares extended on Thursday, erasing much of the rocket company’s gains since its record-setting debut after its $60 billion all-stock deal for AI coding startup Cursor sparked concerns among analysts.
Elon Musk’s rocket firm pulled back from a rally that pushed its market value ahead of Amazon and Microsoft.Getty Images Key Facts Shares of Space X declined by more than 6% to just under $179 as of Thursday afternoon, extending Wednesday’s decline of nearly 5% and a 20% dive since hitting a high above $225 on Tuesday.
That marks a roughly $620 billion reduction in SpaceX’s market value since its Tuesday peak, lowering to $2.37 trillion from about $2.99 trillion, when SpaceX ranked the world’s fourth-largest company ahead of Amazon and Microsoft (it now ranks seventh, behind No. 6 TSMC at $2.38 trillion).