Korean exchange-traded funds holding SpaceX stocks recorded losses over a one-month period as of the 2nd, following volatility in SpaceX's stock price after its initial public offering. The declines stemmed from SpaceX's stock retreat after the company announced a $20 billion corporate bond issuance on the 22nd of last month to repay debt. SpaceX shares closed at $157.54 on the 1st (local time), down 7.80% from the previous trading day, after experiencing significant swings since the company priced its IPO at $135 per share on the 12th of last month and began trading at $150 on the Nasdaq.
Korean Space ETFs Record Double-Digit Losses
According to ETF Check, Korean US aerospace ETFs holding SpaceX stocks posted negative returns over the recent one-month period as of the 2nd. Korea Investment Trust Management's ACE US Space Tech Active declined 19.30% over one month. The fund did not receive any shares in the IPO allocation but purchased SpaceX on the listing day through on-exchange buying, bringing its holding to a maximum portfolio weight of 31.87%.
Samsung Asset Management's KODEX US Aerospace, which holds SpaceX at approximately 20-30% weight, recorded a one-month return of -17.82%. Mirae Asset Asset Management's TIGER US Space Tech fell 32.35%, while Shinhan Asset Management's SOL US Aerospace TOP10 declined 20.74%.
SpaceX Stock Declines Following $20 Billion Bond Issuance Announcement
SpaceX stock closed at $157.54 on the 1st (local time) in the New York stock market, down 7.80% from the previous trading day. SpaceX set its IPO price at $135 per share on the 12th of last month and began trading on the Nasdaq at $150. The stock subsequently surged to an intraday high of $225.64 before retreating to $147.11 within days, exhibiting significant volatility.
SpaceX announced on the 22nd of last month that it would issue $20 billion in corporate bonds to repay debt. This announcement served as the catalyst for the stock's decline.
Wedbush Analyst Maintains Buy Rating with $190 Price Target
Wedbush analyst Daniel Ives maintained a Buy rating on SpaceX. Ives characterized SpaceX as a powerful vertically integrated company combining rocket launches, satellite internet (Starlink), and computing infrastructure. He set a 12-month price target of $190.
FAQ
What caused Korean aerospace ETFs to decline over the one-month period as of the 2nd?
Korean US aerospace ETFs holding SpaceX stocks declined due to volatility in SpaceX's stock price following the company's announcement on the 22nd of last month that it would issue $20 billion in corporate bonds to repay debt.
What was SpaceX's stock performance on the 1st (local time)?
SpaceX stock closed at $157.54 on the 1st (local time), down 7.80% from the previous trading day. The stock had previously reached an intraday high of $225.64 after beginning trading at $150 on its IPO date, following an IPO price of $135 per share set on the 12th of last month.
What is Wedbush analyst Daniel Ives' outlook on SpaceX stock?
Wedbush analyst Daniel Ives maintained a Buy rating on SpaceX with a 12-month price target of $190, characterizing the company as a vertically integrated business combining rocket launches, satellite internet, and computing infrastructure.
