A Sharp Drop and a Quick Bounce

SpaceX stock had a rough day Monday. That bounce came after 13 out of the previous 16 trading sessions had ended in the red. In the broader sell-off that has hit big tech, more than $1.2 trillion in market value has been wiped out from the peak.

What Sparked the Sell-Off

Geopolitical tensions and growing worries that spending on artificial intelligence has gotten ahead of itself have hammered large technology stocks recently. SpaceX, with its future tied to both rockets and AI, got caught in that wave.

Eric Sterner, the chief investment officer for Apollon Wealth Management, said bluntly: “Investor sentiment got way too far ahead of SpaceX’s fundamentals and its valuation was too stretched.” Joe Gilbert,…