KEY POINTS
- SpaceX (NASDAQ:SPCX) has dropped about 18% from its 16 June high of US$225.64 to US$185 at its latest close, just days after the biggest IPO ever.
- The fall looks like normal profit-taking, not a problem with the business.
- There is no simple ASX version of SpaceX, so most local exposure comes through US-listed peers or the wider space theme.
- The stock is priced as if everything will go perfectly, so patient investors may get a better price later.
SpaceX (NASDAQ:SPCX) pulled off the largest IPO in history on 12 June 2026, and the share price has swung wildly since. It sold shares at US$135 each, closed its first day at US$160.95, then shot up to a record US$225.64 on 16 June. Since then, it has fallen back to US$185, down about 18% from that high. The company has not changed in a week, so the question is simple: is the excitement fading, and how can Australian investors take part?
Why SpaceX Pulled Back
The drop has a few clear causes. On 16 June, the stock hit its peak after a surprise US$60 billion deal to buy Cursor, a start-up that makes AI coding tools. That deal pushed SpaceX deeper into AI and excited investors. Options trading also opened that day. The next day, 17 June, the selling began, as traders could finally bet that the stock would fall. Add in some profit-taking, and big swings were always likely.
The bigger worry is the price tag. SpaceX is listed at US$1.77 trillion and has quickly passed US$2 trillion, even though it still loses money. At these levels, investors are paying more than 90 times the company’s yearly sales, which is very expensive. That only makes sense if Starlink and Starship perform almost perfectly for years. With no results due until September, there is little fresh news to support the highs, so the big swings should continue. To us, this looks like a healthy breather, not a broken story, but day-one buyers were always taking a risk.
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How Australians Can Play the Space Theme
The catch for local investors: there is no easy ASX version of SpaceX, and buying SPCX directly needs a broker offering US shares. True ASX space stocks are rare, with Electro Optic Systems (ASX:EOS) the main local name, thanks to the space-tracking and satellite arm that sits alongside its fast-growing defence business.
For more direct exposure, most Australians look overseas. Rocket Lab (NASDAQ:RKLB) is the steadier choice, with a growing launch business, plenty of orders, and a spot in the Nasdaq-100 from 22 June. AST SpaceMobile (NASDAQ:ASTS) is a riskier bet on sending mobile signals straight from satellites to normal phones. Both fell when SpaceX listed as money chased the big new name, but they have started to recover and may be a better value than SpaceX itself.
The Investor’s Takeaway for SPCX
SPCX is an exciting story, but it is priced for perfection. At more than US$2 trillion, the market is betting that Starlink keeps growing and Starship delivers, leaving little room for mistakes. The risks are real. Staff and early backers cannot sell yet, but that block lifts around the September results, which could flood the market with new shares. The company also leans heavily on Elon Musk, who controls more than 80% of the votes, and any Starship or Starlink setback could quickly hit confidence.
For most Australians, we believe the smarter move is to play the wider space theme rather than chase a volatile giant that is hard to buy here. Patient investors may get a better price once the selling settles and real results arrive. The space economy is the real deal, but at today’s price, betting on the most hyped name in it is the riskiest way to do it.
