SpaceX was rebounding on Tuesday, with investors in the rocket and artificial-intelligence company still reeling fromthe previous session’s brutal selloff.

Shares rose 3.1% to $159.33 in early trading. The broader market took a hammering, too—the tech-heavy Nasdaq Composite slumped 1.6%.

The stock sank 16% on Monday, wiping out $401 billion in total market capitalization in a single trading session. It was the second largest one-day market value loss for any U.S. company on record, according to Dow Jones Market Data.

That dragged shares below $161—the level they closed at on June 12 following SpaceX’s record-breaking initial public offering. It came after SpaceX said it would issue its first investment-grade dollar bonds. The company is raising an unspecified amount to repay outstanding borrowings under its bridge loan facility.

After such a big drop, investors may be asking themselves whether it’s time to buy the dip.

Prominent tech bull Cathie Wood did. Wood’s ARK Invest bought SpaceX stock across four of its exchange-traded funds on Monday, according to a daily trade notification.

ARK bought about 210,000 shares, a position that would have been worth more than $32 million as of Monday’s close.

However, Susquehanna analyst Chuck Minervino recommended “waiting for a better entry point,” as he initiated the stock with a Neutral rating in a note early Tuesday. He has a price target of $170.

“We believe the current valuation requires premium multiples on very aggressive revenue and EBITDA growth assumptions. With some of the markets that SPCX operates in being relatively unproven, we believe a wide range of outcomes exist,” he said.

Investors are also struggling to work out what sort of valuation to assign a company that is dreaming of putting AI data centers in space. Analysts don’t think SpaceX will turn a full-year profit until 2028. As of Monday’s close, the stock was fetching 56-times expected sales for 2026.

Some on Wall Street are fretting that there could soon be a lull in the AI boom, with Big Tech hyperscalers likely to struggle to carry on spending at this rate.

The market is also worried that the Federal Reserve could raise interest rates multiple times in 2026, which tends to weigh more on growth stocks like SpaceX because higher borrowing costs chip away at future cash flows.