SpaceX loses over $1 trillion in value from peak

Investing.com -- SpaceX stock continued lower on Friday as the space exploration and artificial intelligence company moved toward erasing more than $1 trillion from its peak market value.

The shares pared some losses after declining as much as 6.9% to $122.12 in morning trading on U.S. exchanges, giving the company with a market capitalization of $1.61 trillion. The company's peaked at $2.64 trillion at the close on June 16, its third trading session.

Elon Musk's firm, which surged following the largest initial public offering in history, has declined since and now trades below its $135 IPO price. Friday's drop followed the company's decision to abort a Starship rocket launch because of an engine problem. SpaceX said it would attempt the launch again in several days.

The company joined the Nasdaq-100 Index earlier this month and received multiple positive analyst ratings. Wall Street analysts have set an average 12-month price target of $235.34 for the stock.

The decline in SpaceX shares affects the recent increase in artificial intelligence-related IPOs. AI formed a central part of SpaceX's IPO presentation, with the company planning space-based data centers to capture a share of what it estimates as a $26.5 trillion addressable market.

The record-breaking offering increased activity for major Wall Street investment banks, which earned their highest revenue from equity offering advisory services in the second quarter since 2021.

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