Shares of Space Exploration Technologies Corp (NASDAQ:SPCX) have declined 5.13% in premarket trading on Monday, following a two-day selloff after the company’s record-breaking initial public offering (IPO).
Before its record-breaking IPO, SpaceX received a governance score equivalent to that of Putin’s Russia, according to MSCI’s ESG risk framework. This rating, which measures a company’s management of financially relevant sustainability risks and opportunities, was assigned just before SpaceX’s public debut.
The company also scored one out of 10 in MSCI’s controversies category, receiving an “orange flag” for indirect involvement in one or more severe ongoing controversies.
SpaceX Faces Growing Selling Pressure
After its blockbuster listing on June 12, SpaceX had become one of the most valuable companies worldwide. SpaceX’s stock experienced a significant surge in its first two full trading days, briefly surpassing the market cap of Amazon.com Inc. (NASDAQ:AMZN) and Microsoft Corp. (NASDAQ:MSFT). However, the stock value subsequently fell back below these tech giants.
CNBC host Jim Cramer said SpaceX could not maintain its meme-stock momentum after a recent decline, arguing that the stock’s rally lost steam as more sellers entered the market. He noted that SpaceX now has a balanced market of buyers and sellers, making it difficult to sustain meme-driven gains.
Despite a recent pullback, SpaceX shares remained up 37% from their debut price of $135 as of Thursday’s close. The IPO has significantly boosted the net worth of Elon Musk, SpaceX’s CEO. According to Forbes, Musk’s net worth now stands at approximately $1.2 trillion, largely propelled by the soaring value of SpaceX. Musk owns roughly 38% of the rocket company, including options.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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