Wall Street Introduces SpaceX-Linked Products Amid Stock Decline
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Wall Street Introduces SpaceX-Linked Products Amid Stock Decline
- Following its June 2026 IPO, SpaceX's stock has experienced a significant decline, falling approximately 29% since its June 12 debut and nearly 50% from its post-IPO high of $225.64.
- In response to the sharp selloff, financial firms like Morgan Stanley and Marex Group Ltd. are developing structured notes designed to protect investors from further losses.
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Since its initial public offering in June 2026, SpaceX’s stock has faced considerable selling pressure, trading below its IPO price of $135. The company’s market capitalization has decreased from a peak of around $3 trillion to approximately $1.5 trillion, representing a loss equivalent to Tesla’s entire market value. This downturn follows an initial surge where shares spiked over $225 in the first days of trading.
In response to this volatility, at least five financial firms, including Morgan Stanley and Marex Group Ltd., are reportedly developing complex investment products. These structured notes are designed to offer buyers protection from future losses, in some cases shielding against declines of up to 50%, while also capping potential gains over the coming months or years.
Analysts have varying price targets for SpaceX. Raymond James set a high target of $800, while Morningstar suggests a fair value closer to $62. Morgan Stanley analysts believe that a stock price of $100 would imply zero value for SpaceX’s AI division, which, along with its space launch segment, is currently operating at a loss. Only Starlink, the satellite internet service, remains profitable. Despite the challenges, Wall Street analysts are largely bullish, with nearly 80% recommending buying shares.
SpaceX’s financials for 2025 showed revenue of $18.67 billion, with the Starlink satellite network generating $11.4 billion in revenue and $4.4 billion in operating profit. The company also recently completed a $25 billion notes offering in June 2026 to refinance debt and fund its AI expansion.