SpaceX Decline Fails to Ripple Through HK Tech Stocks as Analysts Point to Fundamental Business Model Differences
Alina Collins
SpaceX has shed over $1 trillion in market cap since its peak and the Magnificent Seven face a valuation reset, yet analysts say the fallout barely touches Hong Kong tech — and may even push capital eastward.
How far has SpaceX actually fallen?
SpaceX completed the largest IPO in history this June at $135 per share, but the stock has slid steadily since.
As of last Friday it had lost more than $1 trillion from its peak; Monday's close was $119.85 — a seventh straight day of declines.
This means → less than one quarter after listing, the stock sits below its IPO price, and the market's appetite for "space economy" hype is cooling fast.
Why are the Magnificent Seven under pressure too?
Nvidia, Alphabet, Apple, Microsoft, Amazon, Meta and Tesla are all facing valuation corrections ahead of earnings season.
The core doubt: can the massive capital spending on AI hardware translate into matching revenue?
In plain terms = companies have spent enormous sums on AI chips and compute power, but so far there is little proof those outlays are earning their keep.
Why is Hong Kong tech dodging the blast?
Tang Sing-hing (鄧聲興), chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators, said: "I don't think there will be much impact on Hong Kong."
He noted that Hong Kong-listed tech firms run on consumer internet platforms, software services and e-commerce ecosystems — fundamentally different from their U.S. counterparts.
This means → Hong Kong tech earns its money from selling goods and services, not from heavy hardware capex bets, so its valuation logic — and risk exposure — sit in a different lane.
Could capital actually shift from the U.S. to Hong Kong?
Some market participants argue the U.S. tech pullback could act as a catalyst for Hong Kong tech.
The reasoning: global capital may pivot from the "hardware arms race" toward practical software applications — precisely Hong Kong tech's home turf.
Whether Hong Kong tech can genuinely absorb this potential inflow is the key variable to watch in the next phase.
Content is for reference only, not financial advice.