SpaceX shares drop below debut price before jumping amid $600bn sell-off

SpaceX shares dip below debut price, erasing $600bn in value before recovering 2.4 percent amid tech market turbulence.SpaceX shares fell below its market debut price of $150 per share, wiping out $600bn in market value amid a broader tech sell-off rocking markets before jumping 2.4 percent.The dip in early trading on Tuesday follows a 16 percent slump on Monday that erased $400bn in market value for the Elon Musk-led aerospace company. Shares are still 10 percent above the $135 per share initial public offering.Recommended Stories list of 4 itemslist 1 of 4US watchdog opens probe after Tesla crashes into Texas home, killing womanlist 2 of 4Five Eyes intelligence alliance warns of threats from new AI modelslist 3 of 4US gov’t investigates New York coffee chain over ban on pro-Israel lawmakerlist 4 of 4Brexit 10 years on: What has changed in the UK explained in maps and chartsend of listSpaceX saw record-breaking gains after its IPO debuted on June 12, catapulting CEO Elon Musk into becoming the world’s first trillionaire. The company briefly surpassed Microsoft and Amazon in market value before falling to its most recent valuation of $1.9bn.A Reuters analysis found that of the 50 most-valued IPOs in the last five years, investors would have been better off buying S&P 500 index fund about three-quarters of the time than buying into a big IPO. However, analysts are not too worried.“I think any time you see a stock sell off sharply, especially one that everyone is focused on, and then bounce, it’s usually a setup for it to move higher. So I think we go higher from here,” Michael Monaghan, partner portfolio manager at FounderETFs, told Al Jazeera.It comes amid new compute deals fueling the company’s AI ambitions. On Monday, the Musk led company locked in a new deal with an AI startup called Reflection AI, which would allow it access to its Colossus 2 data centre and pay $150m per month to do so. That follows a deal with Google announced earlier this month in which the tech giant would pay SpaceX $920m per month.“Their revenue is increasing, and their balance sheet is getting better, not worse. That should be good for the stock, not cause it to sell off. The final thing is that the stock has a premium valuation and a very low float, so everything is going to be magnified in both directions,” Monaghan said.