Shares of Elon Musk’s SpaceX tech conglomerate plunged 16% Monday to close below their price on June 12, the date of the company’s massive initial public offering.
Market Impact
The company itself — and holders of its previously privately held shares — made more than $85 billion in the initial public offering. However, the average investor who bought SpaceX shares on the open market after its debut has now seen most of their gains disappear, market data shows.
SpaceX’s sell-off came amid a broader market drawdown Monday that also saw shares of Google parent Alphabet notch their worst one-day performance in over a year. The broad S&P 500 Index closed down 0.43%, while the tech-heavy Nasdaq fell 1.3%.
Oil prices declined Monday to lows not seen since March amid progress in talks between the U.S. and Iran. But that was little comfort to tech investors, who are concerned that short-term inflation will increase the debt burden of mega-cap companies that have borrowed large amounts of money to fund their artificial intelligence infrastructure.
Original reporting: Dallas TX News (HLL/CB) — read the source article.
