Space Exploration Technology (SPCX -6.70%) stock closed below $120 on July 20, representing a decline of 25.5% since its first day of trading to the public on June 12. No single issue sent the price lower; it’s likely a mix of factors that contributed to the stock price drop.

That said, the sell-off could create a favorable risk-to-reward setup, depending on where analysts see SpaceX stock trading over the next 12 months. But first, let’s do a quick dive into that collection of potential reasons why the SpaceX stock price has fallen recently.

Image source: The Motley Fool.

The SpaceX decline

There are several possible reasons investors have sold their SpaceX stock. One simple explanation is that the initial public offering hype…