A wave of selling hit high-profile technology stocks this week, with SpaceX (SPCX) extending its post-IPO slide and SoftBank Group suffering its sharpest drop in over three months after reports that OpenAI may delay its mega-listing.
SpaceX shares slipped 1% in pre-market trading Friday to $151.46, briefly dipping below the $150 threshold that has held since its June 12 debut at that exact price. The stock has now lost roughly 24% over six trading sessions from its June 16 intraday high of $225.64. Behind the rout: mounting investor fatigue with high-valuation tech names, underscored by SpaceX’s $4.9 billion loss last year and a price-to-sales ratio of 107, compared to Nvidia’s 21 times. The decline erased CEO Elon Musk’s trillionaire status and, according to The New York Times, has prompted OpenAI to reconsider the timing of its own IPO.
Nevertheless, a potential catalyst arrives after Friday’s close. FTSE Russell will add SpaceX to the Russell 1000 index, classifying the stock as 90.4% growth and 9.6% value. Jefferies estimates passive funds tracking Russell indexes – such as the iShares Russell 1000 ETF (IWB) – will need to purchase roughly $3 billion worth of SPCX in a compressed window near the close. Options markets are pricing a 3.6% intraday swing. In July, inclusion in the Nasdaq 100 is expected, which would compel large funds like the Invesco QQQ ETF to buy shares, adding further index-driven demand. SpaceX remains blocked from the S&P 500 because S&P Global has not altered its profitability criteria.
Meanwhile, SoftBank’s 12% plunge in Tokyo came after the New York Times report that OpenAI may push its IPO into 2027. SoftBank’s total commitment to OpenAI is expected to hit $65 billion by October, and the fair value of that stake reached $79.6 billion at year-end. The listing delay rekindled concerns about the “conglomerate discount” that has long weighed on SoftBank’s valuation, as a public OpenAI would provide a clear benchmark. The selloff also highlights SoftBank’s financial complexity: a $40 billion bridge loan tied to the OpenAI investment is due in March 2027, and an attempt to refinance at least $6 billion via margin loan stalled because lenders struggled to price the private asset. Goldman Sachs and Morgan Stanley are advising OpenAI, and a fall 2026 IPO is still possible if market conditions improve.
