SpaceX valuation decline impacts Scottish Mortgage Investment Trust (SMT)
Scottish Mortgage Investment Trust (SMT) shares are trading down 4.5% at 1,377p on 23 June 2026, extending recent losses. The decline follows a significant overnight drop in the valuation of SpaceX, a major holding for the UK-based investment trust.
SpaceX shares fell 16.4% to $154.6, directly impacting Scottish Mortgage, which held 17.9% of its portfolio in the aerospace company at the end of April. This marks a reversal from earlier in the month, when SpaceX performance, share buybacks drive Scottish Mortgage Investment Trust (SMT) higher.
The trust's share price movement occurs within a broader downturn for US technology stocks, with the Nasdaq Composite also registering a 1.3% decline. Scottish Mortgage's current price of 1,377p is down from its previous close of 1,442p.
Why a SpaceX Valuation Drop Matters for Scottish Mortgage
Scottish Mortgage Investment Trust is essentially a fund that pools money from investors to buy stakes in other companies, often those that are still private or rapidly growing, with a particular focus on innovative technology firms around the globe. Its customers are individuals and institutions seeking exposure to these high-growth, often unlisted, businesses. The trust aims to generate returns by identifying and investing in companies it believes will deliver substantial long-term capital appreciation as their valuations increase.
Today's move stems directly from a significant revaluation of one of its key holdings: SpaceX. The aerospace company saw its shares drop by 16.4% overnight, a substantial decrease that directly impacts Scottish Mortgage. This is because, as of the end of April, Scottish Mortgage had allocated a considerable 17.9% of its entire portfolio to SpaceX, making it a very influential component of the trust's overall value.
This direct link means that as SpaceX's valuation declined, so too did a large portion of Scottish Mortgage's underlying assets, leading its own shares to trade down 4.5% to 1,377p, from yesterday's close of 1,442p.
Think of Scottish Mortgage as a venture capital firm that has invested heavily in a promising, privately-held startup. If that startup's internal valuation suddenly decreases significantly, perhaps due to new market data or internal performance adjustments, then the value of the venture firm's stake in it also falls, directly affecting the overall worth of the firm itself.
Scottish Mortgage Investment Trust
Scottish Mortgage Investment Trust PLC is an investment fund focused on long-term growth, managed by Baillie Gifford & Co Ltd. This UK-domiciled asset manager seeks out publicly listed companies globally, evaluating them on management quality, competitive advantages, customer prospects, and revenue and profit growth. Their investment strategy spans diverse sectors, with a keen eye on current and future valuations. The fund's performance is measured against the FTSE All World Index. Established in 1909, Scottish Mortgage Investment Trust PLC is headquartered in the United Kingdom.