Key Points
Space Exploration Technologies (NASDAQ: SPCX) began trading on June 12 at $150 a share, 11% above its IPO price, and has since risen to $166 a share, marking a 23% increase. In the first quarter of 2026, the company reported a net loss of $4.3 billion against revenue of $4.7 billion.
Research from Edward Jones indicates that the average tech IPO experiences a first-day price increase of over 35%, but investors should be wary; stocks typically return -3% after three months and -14% after six months. A study by Truist Financial found that every major software and tech IPO reviewed experienced significant drawdowns within their first year.
Investor sentiment remains positive, yet caution is advised as experts suggest waiting for more stability in the stock before investing, particularly given CEO Elon Musk’s history of increasing volatility in related stocks.
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