SpaceX (NASDAQ: SPCX) stock price dropped to its IPO price of $135 on July 14 as investors continued to take profits. This drop comes as the governor of the Bank of England, David Bailey, warns that a crash in AI stocks could affect the UK economy and lead to the Bank of England increasing interest rates.
SPCX stock was up by 1.1% today, July 15, to trade at $136 at the time of writing.
SpaceX Wobbles as AI Bubble Concerns Grow
SpaceX stock dropped below its NASDAQ debut price of $150 on July 7. But the fall did not stop there because the shares moved to the IPO price of $135 on July 14.
This drop coincides with mounting concerns that AI stocks are at risk if the AI bubble bursts.
On July 8, former White House economic advisers Jared Bernstein and Ryan Cummings warned that the AI bubble is still inflating as companies continue to spend heavily on AI.
Now, the governor of the Bank of England says that if this AI bubble bursts, its effects will spill over to the economy, and regulators may be forced to step in and take measures like cutting interest rates to prevent more economic fallout.
But these concerns are not denting investor interest towards AI amid reports that China’s DeepSeek is planning to go public at a valuation of $75 billion. This IPO comes as two other leading AI companies, Anthropic and OpenAI, also plan to go public.
SPCX Stock Outlook as Oversold Signal Emerges
SpaceX stock has bounced from the psychological support of $135 after gaining by 1.53% today, July 15.
But these shares now face an obstacle at the resistance of $140 as they attempt to make an uptrend.
If this obstacle at $140 breaks, SpaceX stock price could move to the NASDAQ debut price of $150. This price also serves as a psychological resistance.
However, the RSI reading of 37 suggests that the momentum is favoring bears, and this could derail recovery if buyers remain hesitant.
Still, this RSI reading of 37 also signals that SPCX stock is close to being oversold. If sellers are at the point of exhaustion, a healthy uptrend could begin.
ARK Invest is betting on this uptrend occurring because the fund manager purchased $21.3 million worth of SPCX shares on July 13.
Cathie Wood was among the early buyers of the SpaceX stock after ARK Invest bought $528 million worth of SPCX shares when they debuted on NASDAQ on June 12.
Wall Street Investment Bank Raises SpaceX Stock Target
Wall Street investment bank Needham has raised its target for SpaceX stock from $200 to $250.
The bank also maintained a buy rating on the stock, saying that the release of Grok 4.5 on July 8 aligns with the plans of Elon Musk to rebuild SpaceX’s AI program, and this could bode well for the stock.
Needham also said that the launch of the Starship flight 13 on July 16 could also push the stock price up, with the success of the launch set to unlock a bigger market for SpaceX.
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