SpaceX Dipped Below $150 and Then Bounced Back. Here's What That Tells Long-Term Investors.

Written by Howard Smith for The Motley Fool->

SpaceX has a bright future, but the stock might have more downside coming.

Retail investors are still betting on the stock after its widely followed IPO.

A long-term perspective can cut through all the noise.

Most retail investors were not able to get Space Exploration Technologies (NASDAQ: SPCX), or SpaceX, stock at the initial public offering (IPO) price. After the $135 share offering, though, SpaceX stock opened trading at $150 per share before closing its IPO day at just under $161.

That $150 level essentially became the lowest trading price for SpaceX until it breached it this week. That's important psychologically for two reasons. Here's what it could mean going forward.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

That $150 share price also represents a market cap of just under $2 trillion. While several large tech companies are now worth more than $2 trillion, that level is still meaningful. It's especially notable when comparing SpaceX's financial status with that of the highly profitable big tech companies.

Yet even as the company reported a $4.9 billion loss in 2025, the stock stemmed the slide and bounced back above $150. Financial losses were driven by a massive $6.35 billion loss in its artificial intelligence (AI) segment, though. SpaceX's Starlink broadband connectivity segment was highly profitable.

The recent pullback after the IPO spike represents a drop of over $500 billion in market value. Retail investors haven't been discouraged, though. SpaceX remains one of the top Reddit discussion group stock names, with bullish sentiment. But there still might be a better entry point ahead.

Lockup expirations after the IPO will inevitably bring more sellers into the market. And while the largest IPO in history has brought shareholders paper profits so far, there's no guarantee that will last. The second-largest IPO ever, Saudi Aramco, has lost money for shareholders to date, according to recent research from The Motley Fool.

The good news for investors is that Reddit boards, lockup expirations, and short-term moves are really all just noise. SpaceX has a bright future with significant potential. Starlink will have competition, but costs can be held in check thanks to the company's space launch segment. And the AI business is in growth mode, so investing for growth and experiencing losses are expected at this stage.

The recent announcement that the company issued $25 billion in bonds should serve as a reminder that it still requires capital to meet its growth plans. It will also likely report further losses when it announces its first quarterly results as a public company. Traders and short-term thinkers will probably help drive shares lower, along with early investors cashing in. That's when investors thinking about SpaceX as a long-term holding should be looking to buy.

Before you buy stock in Space Exploration Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Space Exploration Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $382,359!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,201,390!*

Now, it’s worth noting Stock Advisor’s total average return is 883% — a market-crushing outperformance compared to 205% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

*Stock Advisor returns as of June 27, 2026.

Howard Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Reddit. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This data feed is not available at this time.