SpaceX stock faces significant volatility and a 23% decline since joining the Nasdaq-100 following a recent Starship rocket launch failure.
SpaceX shares have plummeted nearly 23% since the company was added to the Nasdaq-100, posting losses in nine of the last 10 trading days. The recent decline followed a failed test flight of the Starship rocket, which was forced to abort due to an engine ignition failure. The aerospace giant's stock experienced a 5.43% drop on Friday alone. While the company's inclusion in the Nasdaq-100 index has created significant demand from large funds, analysts remain divided on its long-term value. Jeremy Grantham, founder of Grantham, Mayo, Van Otterloo & Company, expressed skepticism regarding the company's valuation and its artificial intelligence division. Conversely, Adam Jonas of Morgan Stanley remains bullish, setting a $300 target price. Despite the recent volatility, the company continues to secure major partnerships, including a deal with Alphabet to rent computing power. Investors are currently weighing the high costs of the company's ambitious AI goals against its potential for future growth in the space industry.