The Space Exploration Technologies Corp (NASDAQ: SPCX), or SpaceX, share price dropped another 4% over night.
SpaceX is the world’s leading company at rockets, spaceships and global telecommunications satellites.
SpaceX share price falls
A 4% fall is a large drop by itself. But, the space-focused business has now dropped more than 18% since the start of July and it has declined 31% from 16 June 2026.
Space Exploration Technologies Corp launched onto the global stock market with a great bang. The IPO price was US$135 and shot up to US$201.80 – a rise of almost 50%. But, the SpaceX share price has given up almost all of those gains.
People who bought on those first trading days are now deeply in the red.
There’s a question of what happens next. The excitement is clearly deflating out of SpaceX and perhaps other tech/AI-related companies. There is increasing scrutiny on AI – its energy and water usage, who’s benefiting, token costs, the potential employment negatives and so on.
Businesses heavily involved in the AI sector may not have as bright a future as expected, including SpaceX. While most of its business life has been about space, a significant portion of its underlying value and capital expenditure is focused on data centres and AI.
Is Space Exploration Technologies Corp a buy?
The future is uncertain, particularly when it comes to AI, but I still believe the future is bright for the space-related part of the business, including the satellite service from Starlink.
To me, it’s much more of a buy now than a month ago because of how much better value it is. Yet, people don’t seem as excited about it now that it’s not rocketing higher.
I’m not sure that it represents good value today – a market capitalisation of well over US$1 trillion still represents an optimistic view on the business’ future.
In my view, there are ASX growth shares that could grow earnings much more in percentage terms, but aren’t priced as highly, with the next three to five years in mind.
