Firefly Aerospace Inc. (FLY) experienced an after-hours plunge of 5.15% on Thursday, following a highly successful initial public offering (IPO) debut earlier in the day. The stock's decline comes as investors reassess the company's valuation after the initial excitement surrounding its market entry.

Earlier on Thursday, Firefly Aerospace made a strong debut on the Nasdaq, with shares opening at $70, representing a 56% increase from its IPO price of $45. The stock reached an intraday high of $73.90 before settling around $63-$66 in late afternoon trading, still up approximately 40-45% from its initial offering price. The company raised nearly $870 million through the sale of 19.3 million shares, surpassing initial expectations.

However, the after-hours decline suggests that some investors may be taking a more cautious stance on the space technology firm. Firefly Aerospace, while boasting a significant contract backlog of $1.1 billion and recent success with its Blue Ghost lunar lander, is not yet profitable. The company has stated in its filings that it expects to incur net losses for the next several years, which may be prompting a reevaluation of its near-term prospects and justifying its lofty valuation.