Should You Buy the SpaceX IPO? History Says the Stock Will Make a Big Move in the First Year.
Historically, large IPO stocks have often declined during their first year on the public market.
Overview
The S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) have declined modestly this week as Wall Street prepares for the SpaceX (NASDAQ: SPCX) IPO on Friday, June 12. The event will be historic for multiple reasons: The company will raise a record $75 billion at an unprecedented valuation of $1.77 trillion, making it the largest IPO of all time.
Investment banks involved in the deal report strong demand for SpaceX stock, priced at $135 per share and trading under the ticker SPCX. In fact, the IPO is four times oversubscribed, meaning demand exceeds the number of shares available by a factor of four, according to Reuters.
Details
Should you buy the SpaceX IPO? In the last decade, the average IPO stock gained 25% on the first trading day, but large IPOs have historically dropped sharply during the first year. Here's what you should know.
Source
Originally published at www.fool.com.