SpaceX Stock Drops 3.34% Below $120 as ARK Invest Buys $20.5 Million

Key Takeaways

• SpaceX stock fell 3.34% to a record closing low of $119.85 on July 20, extending its losing streak to seven consecutive sessions.
• SPCX has declined approximately 47% from its June peak of $225.64 and is now about 11% below its $135 IPO price.
• Cathie Wood’s ARK Invest bought another 170,634 SpaceX shares, valued at approximately $20.5 million based on Monday’s closing price.
• Starship testing, SpaceX’s first public earnings report and the approaching IPO lock-up expiration could remain important sources of volatility.

SpaceX Stock Extends Its Post-IPO Decline

SpaceX shares continued their sharp retreat on Monday, July 20, as investors reassessed the company’s valuation following its highly anticipated public listing.

The stock closed 3.34% lower at $119.85, marking a seventh consecutive trading session of declines and its first close below the psychologically important $120 level. Over those seven sessions, SpaceX stock has lost approximately 21% of its value.

The latest decline has carried SPCX considerably below its $135 IPO price. The stock is also nearly 47% lower than the record high of $225.64 reached shortly after the company’s June listing.

Despite the sell-off, Cathie Wood’s ARK Invest continued to increase its exposure. The investment manager purchased 170,634 SpaceX shares through four exchange-traded funds on Monday, demonstrating that its long-term outlook remains more optimistic than current market sentiment.

SPCX Has Lost More Than $1 Trillion in Market Value

SpaceX initially attracted strong demand after completing the largest IPO in market history. The shares climbed rapidly during their first few trading sessions, briefly giving the company a market capitalisation of approximately $2.68 trillion.

That early momentum has now reversed. At Monday’s close, SpaceX’s market value had fallen to around $1.59 trillion, representing a decline of approximately $1.09 trillion from its June peak.

The decrease also pushed SpaceX below Meta Platforms in the ranking of America’s largest publicly traded companies. Meta ended Monday with a market value of approximately $1.64 trillion, compared with SpaceX’s $1.59 trillion.

Although the size of the decline is significant, substantial post-IPO volatility is not unusual for newly listed companies. SpaceX entered the public market with a high valuation based largely on expectations for future growth across Starlink, launch services, artificial intelligence and orbital infrastructure.

Why Is SpaceX Stock Falling?

Several factors appear to be contributing to the continued pressure on SpaceX stock.

Starship delays increase execution concerns

SpaceX recently aborted the 13th test flight of its Starship rocket after encountering engine-related issues. The company is targeting another attempt on Thursday, July 23.

A Falcon 9 mission scheduled to deploy satellites from California was also scrubbed on Monday. These delays do not necessarily alter SpaceX’s longer-term prospects, but they have increased attention on the operational risks surrounding its ambitious development programme.

Starship is central to the company’s plans to reduce launch costs, deploy larger Starlink satellites and eventually develop lunar missions and space-based computing infrastructure. As a result, progress or further delays in the test programme could affect short-term sentiment towards SPCX.

Investors are reassessing SpaceX’s valuation

SpaceX’s market value remains substantially higher than that of most aerospace and telecommunications companies, even after its recent decline.

Investors are therefore examining whether growth in Starlink subscriptions, launch revenue and artificial intelligence infrastructure can justify the company’s valuation. The company also raised $25 billion through the bond market to finance technology and AI infrastructure, increasing scrutiny of its capital requirements.

The IPO lock-up expiration is approaching

SpaceX is expected to publish its first financial results as a listed company in early August. After the report, the first phase of its IPO lock-up is scheduled to expire.

Approximately 911.5 million shares held by eligible employees and early investors could become available for sale on the second trading day after the earnings announcement. This does not mean that all those shares will enter the market, but the possibility of additional supply may be encouraging some investors to reduce their positions in advance.

Cathie Wood Buys Another $20.5 Million of SpaceX Stock

ARK Invest took the opposite side of Monday’s sell-off by purchasing 170,634 SpaceX shares across the ARK Innovation ETF, ARK Autonomous Technology & Robotics ETF, ARK Next Generation Internet ETF and ARK Space & Defense Innovation ETF.

The investment manager has been building its position since SpaceX’s public debut. ARK bought nearly 3.3 million shares on the IPO day and has continued adding to the holding during subsequent price declines.

The purchases indicate that ARK views the current weakness as a long-term valuation opportunity. However, they do not provide evidence that the stock has reached a short-term bottom. Increasing the position also raises the individual ARK funds’ exposure to further changes in SpaceX’s share price.

Why Does ARK Remain Bullish on SpaceX?

ARK’s SpaceX thesis extends beyond conventional rocket launches. It is based on the potential expansion of Starlink, reusable launch technology, satellite communications and longer-term opportunities in orbital computing.

In a model published in 2025, ARK estimated that SpaceX could reach an enterprise value of approximately $2.5 trillion by 2030. Its bull-case estimate was $3.1 trillion, while the bear case was $1.7 trillion. ARK explicitly described these figures as scenario-based forecasts rather than guaranteed outcomes or direct share-price targets. The model also predates SpaceX’s public listing and subsequent changes to its capital structure.

ARK’s later IPO research argued that orbital data centres could become economically attractive if Starship reduces the cost of transporting equipment into orbit. That outlook remains highly speculative because it depends on technological progress, regulatory approvals, funding and commercial demand.

What Could Move SpaceX Stock Next?

Investors are likely to focus on four major developments:

• The planned Starship Flight 13 test on July 23
• SpaceX’s first post-IPO earnings report, expected in August
• The initial expiration of employee and early-investor lock-up restrictions
• Updates on Starlink growth, AI infrastructure spending and cash flow

The $120 level may now act as an initial reference point after Monday’s breakdown, while the $135 IPO price could become an important recovery level. Nevertheless, newly listed shares can remain highly volatile, and short-term price levels may change quickly around operational or financial announcements.