finance
SpaceX shares fall 16% to close below IPO price
The stock dropped for a third straight day after its record initial public offering. Average investors who bought after the debut have lost most of their gains.
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Shares of the company fell 16% Monday to close at $154.60, below the $160.90 price recorded on the June 12 initial public offering. The decline marked the third consecutive trading day lower for the stock, which reached a high of $201.80 on June 16. At the latest close, shares stood about 23% below that peak.
Market context The broader market also declined Monday, with the S&P 500 Index falling 0.43% and the tech-heavy Nasdaq dropping 1.3%. Oil prices reached lows not seen since March amid talks between the U.S. and Iran.
Company performance The company and holders of its previously private shares raised more than $85 billion in the offering. Its market capitalization remains about $2 trillion. Bloomberg News reported the company is seeking to raise at least $20 billion through a bond sale. A senior economist at Interactive Brokers said investors are wary of the cash needed to fund technological ambitions.
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