SpaceX IPO Update
On June 12, 2023, SpaceX (NASDAQ: SPCX) made its market debut with a record-breaking initial public offering (IPO) that raised $75 billion, launching at an initial price of $135 per share. As of June 23, the stock has dropped 23% to $156, following a peak of $202 just four days after the launch. Historical data indicates that the average decline for large IPOs within their first year is around 50%, potentially dropping SpaceX shares to $67.50 at some point and possibly finishing the year at $90.
SpaceX currently trades at 104 times its revenue of $19.3 billion, making it nearly twice as expensive as the most richly valued stock in the S&P 500, which is valued at 55 times sales. Given the unsustainable valuation and historical trends, analysts predict further declines in the stock’s performance.
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