SpaceX stock experienced a significant decline, dropping as much as 10.8% in a single day and marking its largest one-day fall since its recent IPO. The company also announced its inaugural bond sale, an offering reportedly targeting around $20 billion, which contributed to investor concerns. Concurrently, SpaceX secured a major $6.3 billion deal with AI startup Reflection AI to provide data-center capacity, adding a substantial new revenue stream.
SpaceX stock fell sharply, dropping as much as 10.8% on Monday for its biggest one-day decline since going public earlier this month. Shares are now more than 15% below their record close of $201.80.
The company shed about $250 billion in market capitalization in a single day according to the data. Despite the drop, shares remain up around 27% from their IPO price of $135.
SpaceX confirmed its first-ever bond sale in a filing on Monday morning. The company stated it “intends to use the net proceeds from the Notes offering to repay the outstanding borrowings under its bridge loan facility in full” and for related expenses.
Bloomberg reported the company was preparing an offering in the $20 billion range. Investors were reportedly concerned the bond sale signals SpaceX may be overvalued.
Debt offerings can weigh on stock prices as investors grow concerned about interest expense. This may be another reason for the recent share price decline.
Furthermore, SpaceX announced a $6 billion deal with AI startup Reflection AI on Monday. The startup has agreed to rent data-center capacity, following similar agreements with Anthropic and Google.
Sources told the Wall Street Journal the deal will provide SpaceX with $150 million per month in revenue starting July 1 through 2029. If completed, the agreement would be worth $6.3 billion.
