Shares of SpaceX (SPCX), Oracle Corp. (ORCL), and QuantumScape Corp. (QS) fell to annual or all-time lows on Thursday as a broader market selloff in technology companies combined with company-specific triggers. SPCX stock fell to an all-time low of $110.85, dipping below its IPO price of $135, while ORCL stock declined to a 52-week low of $119.44 and QS shares dropped to a 52-week low of $4.97. The declines reflected fading market enthusiasm for SpaceX following its historic debut, growing concerns over Oracle's aggressive AI infrastructure spending and ballooning debt, and investor focus on QuantumScape's longer-term profitability challenges despite a narrower-than-expected Q2 loss. SPCX recovered to close up about 2.6%, while ORCL declined 4.61% and QS slumped nearly 13% at the close. The tech sector faced mounting pressure as investors weighed whether capital expenditures from hyperscalers would translate into growth.
SpaceX Falls Below IPO Price Amid Market Selloff
SPCX stock fell to an all-time low of $110.85, dipping significantly below its IPO price of $135, amid a broader market selloff combined with fading market enthusiasm around its shares. Elon Musk's aerospace company is on track for a third consecutive week of declines amid heavy selling pressure following its historic debut. SPCX stock is down more than 26% since its debut.
SpaceX has stopped accepting new commercial Falcon 9 launches and rideshare missions beyond 2028, signaling growing confidence in its next-generation Starship rocket, according to Bloomberg. The company is winding down production of some Falcon 9 expendable components while continuing missions for NASA and the Pentagon.
The company scrubbed the latest launch of its Starship mega rocket due to technical glitches and is planning a relaunch on July 24 from Starbase, Texas. SpaceX stated in a post on X: "A key objective for the flight test is to get clear imagery from the ground of Starship's heatshield as it flies at a higher dynamic pressure during ascent, which won't be possible with today's weather conditions. Visibility is forecast to be ideal for a Friday attempt."
Retail sentiment on Stocktwits was bearish at the time of writing.
Oracle Declines to Two-Year Low on AI Capex Concerns
ORCL stock fell to a 52-week low of $119.44 on Thursday, the lowest level in more than two years. The hyperscaler has been declining amid growing criticism for its aggressive spending on cloud infrastructure and rapidly ballooning debt. The company plans to spend up to $95 billion in capital expenditures in fiscal 2027 and raise $40 billion through debt and equity. This has fueled worries about rising leverage and negative free cash flow.
Higher capex announcements from Alphabet Inc. (GOOG, GOOGL) have further deepened concerns for the sector as investors weigh whether the growing spending will translate into growth. ORCL stock is down more than 38% this year.
Oracle won a contract under the Department of War Enterprise Software Initiative worth nearly $7 billion over 10 years. Despite the stock decline, retail sentiment on Stocktwits was bullish at the time of writing amid optimism over the Pentagon contract.
QuantumScape Drops Following Q2 Results and Volkswagen Milestone Reduction
QS shares fell to a 52-week low of $4.97 despite reporting a narrower-than-expected loss in Q2 as investors focused on longer-term challenges. The company reaffirmed its full-year adjusted EBITDA loss guidance of $250 million to $275 million, underscoring profitability issues.
QuantumScape announced an expansion beyond electric vehicles into AI data centers, aerospace and defense, and plans to scale manufacturing efforts to boost customer sample shipments. Sentiment weakened after Volkswagen's PowerCo reduced potential milestone payments under their collaboration agreement to $75 million from $131 million. Broader weakness in technology stocks also weighed on the shares.
QS stock is down more than 53% this year. Despite the decline, retail sentiment on Stocktwits was extremely bullish at the time of writing.
FAQ
Why did SpaceX (SPCX) stock fall below its IPO price?
SPCX stock fell to an all-time low of $110.85, below its IPO price of $135, due to a broader market selloff in technology companies and fading market enthusiasm following its historic debut. The stock is down more than 26% since its debut and is on track for a third consecutive week of declines.
What caused Oracle (ORCL) stock to reach a 52-week low?
ORCL stock fell to a 52-week low of $119.44 on Thursday amid growing concerns over its aggressive spending on cloud infrastructure and rapidly ballooning debt. The company plans to spend up to $95 billion in capital expenditures in fiscal 2027 and raise $40 billion through debt and equity, fueling worries about rising leverage and negative free cash flow.
Why did QuantumScape (QS) shares decline after Q2 results?
QS shares fell to a 52-week low of $4.97 despite reporting a narrower-than-expected Q2 loss because investors focused on longer-term profitability challenges. The company reaffirmed its full-year adjusted EBITDA loss guidance of $250 million to $275 million, and Volkswagen's PowerCo reduced potential milestone payments under their collaboration agreement to $75 million from $131 million.
