Key Points
Space Exploration Technologies (NASDAQ: SPCX) made history with the largest IPO ever on June 12, 2023, initially priced at $135 per share.
In its opening week, the stock surged 67%, peaking at $225.64 on June 16. However, by June 19, it had fallen to approximately $202.91, marking a 10.7% decline. Currently, the stock is down over 25% from its peak.
According to data from finance professor Jay Ritter, while the average first-day IPO gain is about 19%, stocks like SpaceX typically show underperformance three years post-IPO. The company is now trading at over 100 times trailing sales, and pressure may increase as insider lock-up periods expire in August.
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