Shares of SpaceX (SPCX), International Business Machines Corp. (IBM), and Boston Scientific Corp. (BSX) slumped to 52-week lows on Wednesday. SPCX closed 0.6% lower, IBM fell 2.7%, and BSX dropped to an annual low before recovering to close up about 1%. The declines stemmed from profit-taking in SPCX, IBM's preliminary second-quarter revenue miss of $17.2 billion against analyst expectations, and Wall Street concerns over a mixed setup for the medical technology sector affecting BSX. Broader market concerns over AI spending and sector-specific headwinds contributed to the selloff across these three stocks.
SpaceX Stock Falls Below IPO Price
SPCX stock fell to an all-time low of $132.15, dipping below its IPO price of $135. Elon Musk's aerospace company declined for a fourth-straight session as the initial post-IPO hype is cooling off. The stock has experienced heavy selling following its aggressive capital-raising plans and a limited public float, which has amplified market volatility.
SpaceX is preparing for the 13th test flight of Starship, its next-generation fully reusable rocket designed to significantly reduce the cost of space travel while greatly expanding payload capacity. Unlike the partially reusable Falcon 9, which can carry about 25,000 kilograms to orbit at roughly $1,500 per kilogram, Starship is being developed to transport up to 150,000 kilograms at a fraction of that cost.
Piper Sandler initiated coverage of SpaceX with a 'Neutral' rating and $156 price target. SPCX stock is down nearly 16% since its debut, with retail sentiment on Stocktwits 'bearish' at the time of writing.
IBM Stock Declines Amid Q2 Revenue Miss and Analyst Downgrades
IBM stock slipped to an annual low of $211.03 and is on track for its steepest weekly decline on record after the company's preliminary second-quarter results showed revenue of $17.2 billion, below Wall Street expectations.
CEO Arvind Krishna said on Monday that the miss was largely due to the company's infrastructure division, where sales fell 7% as clients pulled back or delayed IT and data center spending amid rising cybersecurity concerns.
Bank of America lowered its price target on IBM to $280 from $330 and kept a 'Buy' rating on the shares on Wednesday. The analyst said that while it was "surprised by the magnitude" of the topline miss, it noted that both software and infrastructure significantly missed estimates.
Oppenheimer downgraded IBM to 'Perform' from 'Outperform' and removed its price target following the Q2 results miss. IBM stock is down more than 27% so far this year, with retail sentiment on Stocktwits in the 'extremely bullish' territory at the time of writing.
Boston Scientific Stock Drops on MedTech Sector Concerns
BSX stock fell to a 52-week low of $42.20 on Wednesday before recovering to close green. The company has been pressured by a weakness in the broader medical technology industry.
Mizuho analyst Anthony Petrone lowered the price target on the company to $70 from $90 and maintained an 'Outperform' rating on the shares, noting that the firm sees a "mixed setup" for the sector.
RBC Capital analyst Shagun Singh lowered the price target on BSX stock to $85 from $100 and kept an 'Outperform' rating on the shares as part of a broader Q2 preview of the MedTech industry. The research firm said that its extensive discussions with key opinion leaders during the quarter continue to suggest a stable procedure-volume backdrop, steady demand for medical-device capital, and healthy end-market demand, with no structural deterioration in sight. However, for the company in particular, sentiment is cautious for the rest of the year, as economic headwinds are expected to persist amid a ramp-up in competition.
BSX stock has declined more than 54% so far this year, with sentiment on the shares at 'neutral' on Stocktwits.
FAQ
Why did SpaceX stock fall below its IPO price?
SPCX stock fell to $132.15, below its IPO price of $135, due to profit-taking, cooling investor sentiment, and broader market concerns over AI spending. The stock has experienced heavy selling following its aggressive capital-raising plans and a limited public float.
What caused IBM stock to hit a 52-week low on Wednesday?
IBM stock slipped to an annual low of $211.03 after the company's preliminary second-quarter results showed revenue of $17.2 billion, below Wall Street expectations. CEO Arvind Krishna said the miss was largely due to the company's infrastructure division, where sales fell 7% as clients pulled back or delayed IT and data center spending amid rising cybersecurity concerns.
Why did Boston Scientific stock drop to a 52-week low?
BSX stock fell to a 52-week low of $42.20 on Wednesday amid Wall Street concerns over a mixed setup for the medical technology sector. Multiple analysts lowered their price targets on the stock, citing cautious sentiment for the rest of the year as economic headwinds are expected to persist amid a ramp-up in competition.
