SpaceX stock value drops $600B in 3 days after initial launch

SpaceX's stock has experienced a dramatic selloff, losing more than $600 billion in market value over three days after its highly anticipated public debut. The rocket and AI company's shares saw significant fluctuations, dipping to $146.88, below its IPO price of $135, before staging a partial recovery.

Despite the sharp decline, the stock bounced back into positive territory, trading up 1.6 percent to around $157 as of Tuesday morning. However, the volatility has led analysts to advise caution. Nic Puckrin, a cross-asset analyst, noted that such swings are not unusual for a stock with a small public float and cautioned against viewing the drop as a definitive buying opportunity.

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I’d be cautious about seeing this as a second-chance buying opportunity. The drop looks dramatic in scale, but these swings aren’t unusual for a stock with such a small public float.

SpaceX's initial public offering was the largest ever for a Wall Street debut, fueling a trading frenzy in its first week. At one point, the company briefly surpassed tech giants Microsoft and Amazon in market valuation. The company's last recorded market valuation stood at $1.99 trillion.

Historical data suggests that major IPOs often face turbulence in their early trading days. A Reuters analysis of 50 high-valuation IPOs over the past five years indicated that investors would have been better off investing in an S&P 500 index fund in approximately three-quarters of those cases compared to investing in the IPOs themselves. SpaceX also announced a bond offering earlier in the week.

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that’s what SpaceX is all about, it’s to take the fiction out of science fiction