What happened: SpaceX (SPCX) stock tumbled for a second day in a row on Thursday, dropping as much as 10% before trimming losses.
What’s behind the move: The stock extended losses after breaking a three-day winning streak in the prior session, when broader markets declined following the Federal Reserve’s decision to leave interest rates unchanged.
While the major indexes rebounded on Thursday, SpaceX continued to slide.
Meanwhile on Thursday, Bloomberg reported that bankers for the company are preparing to hold investor calls as soon as next week for a potential bond deal expected to total at least $20 billion. The offering would mark the SpaceX’s first investment-grade US dollar bond issuance, aimed at refinancing a bridge loan maturing in 2027.
What else you need to know: The stock decline marks a reversal from the recent buying frenzy surrounding SpaceX and raises questions about whether that momentum can justify a valuation that surged for three straight days.
Vanda Research recently noted that SpaceX has topped the leaderboard as the most-bought stock by retail investors for three consecutive sessions since its public debut last Friday.
The firm said SpaceX is starting to trade like a “Magnificent Seven” stock.
“Retail investors have bought roughly the same amount of SPCX over the last 3 sessions as they have bought NVDA, GOOGL, AMZN, MSFT, META, QQQ and SPY combined,” said the note.
SpaceX went public last Friday in a blockbuster IPO. Shares opened at $150 after the company priced them at $135. The stock surged more than 19% on its first day of trading.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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