Sinks 7.7% on Heavy Volume as SpaceX AI Device Report Stirs Doubt

SPCX closed at $157.69, down 7.71% from the prior close of $170.86.

Executive Summary

SPCX opened at $171.57, pushed marginally higher to an intraday high of $171.74, then sold off through the session to a low of $155.00 before closing at $157.69, down 7.71% versus Monday's close of $170.86. Volume of 91,673,449 shares came in below the average volume to date of 186,354,187. News flow was heavy and mixed: Wedbush initiated coverage with an Outperform rating and a $190 price target, and Wedbush's Dan Ives reiterated a bullish long-term view citing Starlink's sub-1% share of the global broadband market. Against that, several pieces raised valuation concerns, pointing to a price-to-sales multiple in the 114x-116x range and arguing the stock is not yet buyable at current levels. Separately, the Wall Street Journal reported that SpaceX showed investors a prototype AI device, a report Elon Musk publicly refuted.

News

1. Firefly Aerospace vs. Rocket Lab USA: Which Space Stock Is a Better Buy in 2026?

Firefly Aerospace and Rocket Lab USA represent two different approaches to the expanding space economy. Firefly achieved 135% revenue growth in FY 2025 with successful lunar missions, while Rocket Lab is pursuing an $8 billion acquisition of Iridium Communications to become a comprehensive space systems provider. The article recommends Rocket Lab for 2026 despite both companies showing promise, citing its potential to compete with SpaceX through the transformative Iridium deal. (The Motley Fool, Jul 1, 3:25 PM ET)

2. Elon Musk Refutes Wall Street Journal's Report That SpaceX Showed Investors Prototype Of New AI Device

(Benzinga, Jul 1, 2:36 PM ET)

3. While I Like SpaceX, Here's Why I'm Not Buying Its Stock Yet

SpaceX is acknowledged as a category leader in rocket launches, satellite communications, and emerging AI processing markets with strong technological capabilities. However, the author recommends against buying the stock currently due to valuation concerns, citing a 111x price-to-revenue multiple and risks from rising interest rates and macroeconomic headwinds, despite expectations for revenue acceleration. (The Motley Fool, Jul 1, 2:35 PM ET)

4. 4 Lessons for Future OpenAI and Anthropic Investors, Following SpaceX's Historic IPO

SpaceX's volatile IPO debut offers cautionary lessons for investors eyeing OpenAI and Anthropic IPOs. Both AI companies face high valuations, unprofitability concerns, and plans to float only 5-10% of shares while allocating significant portions to retail investors—similar to SpaceX's strategy that may signal weak institutional demand. (The Motley Fool, Jul 1, 2:08 PM ET)

5. 'SpaceX Handset-Like Device Prototype Prototype To Run On Proprietary Operating System Integrating AI Technology From SpaceX's xAI; Prototype Described as Having Sleek Design Slimmer Than iPhone; Device Would Use A Qualcomm Snapdragon Chipset' - WSJ

(Benzinga, Jul 1, 2:06 PM ET)

6. 'SpaceX Showed Investors Prototype of Elon Musk’s New AI Device' - Wall Street Journal Exclusive

(Benzinga, Jul 1, 1:58 PM ET)

7. EXCLUSIVE: Market Expert Jay Woods Picks Top 2 Magnificent Seven Stocks For Rest of 2026, 2027

Market expert Jay Woods shares his top two Magnificent Seven stocks for the second half of 2026 with Benzinga in an exclusive interview. (Benzinga, Jul 1, 1:42 PM ET)

8. Leveraged SpaceX ETFs Are Exploding in Popularity. That's Usually a Warning Sign.

The surge in popularity of leveraged SpaceX ETFs following the company's IPO signals a concerning market euphoria. Rising margin debt ($1.42 trillion, up 53.7% year-over-year) combined with increased use of leveraged financial products creates vulnerability to market corrections. Even small market dips could trigger forced selling and margin calls, amplifying volatility across the broader market. (The Motley Fool, Jul 1, 1:13 PM ET)

Price Action

Metric	Value
Open	$171.57
High	$171.74
Low	$155.00
Close	$157.69
Change vs prior close	-7.71% ($170.86 to $157.69)
Volume	91,673,449
Intraday range	$16.74
Close vs IPO offer ($135.00)	+16.81%

SPCX opened just below the prior session's close-adjacent level at $171.57, briefly extended to a session high of $171.74, then declined steadily for the remainder of the session to a low of $155.00 before settling at $157.69. The decline erased the prior day's advance and then some. Volume of 91.67 million shares was roughly half the average volume to date of 186.35 million, though it was modestly higher than the prior session's 82.14 million shares. Measured against the $135.00 IPO offer price, SPCX remains up 16.81% since its June 12 debut. SPCX gave back the prior session's bounce in a single day, closing near its intraday low on below-average volume.

Technicals

SPCX is thirteen trading sessions removed from its June 12, 2026 IPO, so 14-day RSI and the 20-, 50-, and 200-day moving averages are not yet computable and are not shown. The read below relies on price structure, candle shape, volume, and the shorter-window averages that are available (5-day and 10-day).

Trend

Since the IPO close of $160.95, SPCX rallied over the first week to a peak close of $201.80 on June 16, then declined steadily into the $153-$154 area by June 24-26, bounced over two sessions to $170.86 on June 30, and reversed lower again today to $157.69. The available short-term averages, SMA-5 at $159.79, EMA-5 at $161.71, and SMA-10 at $164.10, all sit above today's close, with price now trading below all three. The short-term trend is down.

Candle read

Today's candle has a body of -13.87, an upper wick of just 0.18, and a lower wick of 2.69, against a total range of 16.74. Close location of 0.16 puts the close only about 16% up from the day's low. That is a long red body with almost no upper wick: price opened near the day's high and sold off for nearly the entire session, closing just above the low. It is a decisively bearish session candle.

Support levels

• $155.00, today's session low
• $150.00, nearest round-number level below
• $135.00, the IPO offer price, the deepest reference point on the chart

Resistance levels

• $159.79, the 5-day SMA
• $160.95, the IPO closing price
• $161.71, the 5-day EMA
• $164.10, the 10-day SMA
• $170.86-$171.74, the prior close and today's session high

Momentum interpretation

Bull scenario: a reclaim and hold above the $159.79-$161.71 SMA-5/EMA-5 cluster would reassert the bounce that stalled today; a subsequent move through the $164.10 10-day SMA would open room back toward $170.86.

Bear scenario: a failure to hold the $155.00 session low opens the $150.00 round-number level, with the $135.00 IPO offer price as the next reference below that.

Neutral scenario: consolidation between $155.00 and $160.95 while the short-term averages flatten out.

Trading Takeaway

Today's session reversed the prior two-day bounce, with price closing near its intraday low on volume that remained below the trailing average. For the next session, the key levels to watch are support at $155.00 and $150.00, and resistance at $159.79, $160.95, and $164.10.

Sources

1. Firefly Aerospace vs. Rocket Lab USA: Which Space Stock Is a Better Buy in 2026? — The Motley Fool
2. Elon Musk Refutes Wall Street Journal's Report That SpaceX Showed Investors Prototype Of New AI Device — Benzinga
3. While I Like SpaceX, Here's Why I'm Not Buying Its Stock Yet — The Motley Fool
4. 4 Lessons for Future OpenAI and Anthropic Investors, Following SpaceX's Historic IPO — The Motley Fool
5. 'SpaceX Handset-Like Device Prototype To Run On Proprietary Operating System Integrating AI Technology From SpaceX's xAI' - WSJ — Benzinga
6. 'SpaceX Showed Investors Prototype of Elon Musk's New AI Device' - Wall Street Journal Exclusive — Benzinga
7. EXCLUSIVE: Market Expert Jay Woods Picks Top 2 Magnificent Seven Stocks For Rest of 2026, 2027 — Benzinga
8. Leveraged SpaceX ETFs Are Exploding in Popularity. That's Usually a Warning Sign. — The Motley Fool
9. Dan Ives' SpaceX Bull Case Comes Down to One Number: Less Than 1% — Benzinga
10. xAI Rolls Out Voice Agent Builder No-Code Platform To Configure Production Voice Agents On Grok Voice — Benzinga
11. Wedbush Initiates Coverage On SpaceX with Outperform Rating, Announces Price Target of $190 — Benzinga
12. Michael Saylor Says 'AI-Driven Black Hole' Diverts Capital Away From Bitcoin — Benzinga
13. Dan Ives Says SpaceX's 'Demand Flywheel' is Just Getting Started As Wall Street Veteran Roger Altman Questions How Anyone Can Value the Stock — Benzinga
14. Bitcoin Cratered 20% in June as ETFs Bled $4.5 Billion: What's Next for BTC? — Benzinga
15. SpaceX Stock Now Has a Price to Sales Ratio Over 115x. Is It Worth Buying Anyway? — The Motley Fool
16. Buy SpaceX Stock Before It Soars, Says Wall Street. A $10,000 Investment Could Be Worth This Much in a Year. — The Motley Fool
17. It Took Tesla 10 Years to Perform Its First Stock Split. Here's Why a SpaceX Stock Split Could Come Much Sooner. — The Motley Fool
18. Trillionaire Elon Musk Says Neuralink Could Deliver 'Jesus-Level' Miracles — Benzinga
19. Dan Ives Says SpaceX Looks Expensive, But Elon Musk-Led SPCX Could Become 'One of the Best AI Plays' — Benzinga
20. SpaceX Nears a Major Milestone Within 15 Days, and Investors Should Pay Attention — The Motley Fool
21. Micron Joins Dell, SoFi and JPMorgan in Backing Trump Accounts Ahead of the Program's July 4 Nationwide Rollout — Benzinga
22. Alpaca Markets (SIP) — market data

Disclaimer

This report is for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security. Data is sourced from Alpaca Markets and the cited news providers as of the timestamps noted above and may be incomplete or delayed. Verify all figures independently before making any financial decision.