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SpaceX Stock Drops After $60 Billion Cursor Deal as Investors Weigh Further Downside

SpaceX stock fell to $185 after the company announced its $60 billion acquisition of Anysphere, the startup behind Cursor. Shares remain above the $135 IPO price, while analyst estimates range from Morningstar’s $62 fair value to Oppenheimer’s $250 target.

Written By : Kelvin Munene
Reviewed By : Achu Krishnan

SpaceX shares have fallen for two straight sessions after the company announced its $60 billion purchase of Anysphere, the startup behind the Cursor AI coding platform. The decline followed a strong rally after the company’s record initial public offering on June 12.

The stock closed at $185 on Thursday, June 18, down 3.56% for the session. Shares had also lost about 5% on Wednesday. Despite the pullback, SpaceX stock still traded nearly 37% above its $135 IPO price.

SpaceX Stock Retreats From Record High After Strong IPO Rally

SpaceX priced its IPO at $135 per share and raised $75 billion through the offering. Shares opened above the IPO price and closed their first trading session near $161. The stock then extended its rally, reaching a record intraday high of $225.64 on Tuesday.

The decline from that peak left shares about 18% below the weekly high. Still, the stock remained well above both its offering price and first-day close. The rapid rise and pullback came within one week of the company’s public market debut.

SpaceX offered only a small portion of its total shares to public investors. The limited supply can increase daily price swings when trading demand changes. Options also started trading during the week, giving investors more ways to take positions on a rise or decline.

Cursor Purchase Raises Questions About Valuation and Share Dilution

SpaceX announced the purchase of Anysphere on Tuesday in an all-stock transaction valued at $60 billion. The deal is expected to close in the third quarter of 2026, subject to regulatory approval and other closing conditions.

Since SpaceX will pay with shares, the transaction will increase the number of shares linked to the company’s value. This can reduce the ownership percentage held by existing shareholders. The acquisition represents about 3.4% of SpaceX’s $1.77 trillion IPO valuation.

Morningstar reduced its fair value estimate from $63 to $62 after the deal announcement. Its estimate places the stock about 66% below Thursday’s closing price. Before the IPO, the research firm valued SpaceX at about $780 billion.

Morningstar described the shares as “significantly overvalued,” while questioning whether future earnings can support the company’s market value. Its assessment also carries doubt over the economics of proposed orbital data centres and the timeline for making Starship fully reusable.

ALSO READ: SpaceX Plans $20B Bond Sale Post IPO to Fuel AI Expansion Strategy

Analyst Estimates Show a Wide Range for SpaceX Shares

Morningstar’s $62 estimate represents one of the lowest valuations for SpaceX stock. A decline to that level would place the shares below the $135 IPO price. Meanwhile, a return to the offering price would require a drop of about 27% from Thursday’s close.

Oppenheimer has presented a different view. The investment bank initially placed an Outperform rating and a $190 price target on SpaceX. Analyst Timothy Horan said the company has capital, data, hardware, manufacturing capacity and engineering resources across its operations.

Following the Cursor announcement, reports said Oppenheimer increased its target to $250. Horan described the transaction as ‘beneficial for both sides,’ although the acquisition has not yet closed and its future revenue contribution remains uncertain.

Susquehanna analyst Chris Murphy also warned about possible volatility. He placed a 15% probability on SpaceX shares losing more than half their value within three months. A 50% fall from $185 would take the stock to about $92.50.

For now, the main reference levels are the $169 optimistic valuation cited by Morningstar, the $135 IPO price and the firm’s $62 fair value estimate. The stock’s next move will depend on trading activity, the Cursor deal process and new financial information from SpaceX.

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