SpaceX Has Nosedived 50% From Its All-Time High, and It May Realistically Lose Another 50% Before Its Valuation Makes Any Sense
History has a way of accurately forecasting the future on Wall Street.
Overview
On June 12, Elon Musk's artificial intelligence (AI) and space infrastructure conglomerate rewrote Wall Street's record books. Including the underwriters' overallotment, Space Exploration Technologies (SpaceX) (NASDAQ: SPCX) raised $85.7 billion and vaulted to a valuation of nearly $3 trillion just days after its initial public offering (IPO).
But this initial buzz has quickly faded. Since peaking at $225.64 per share on June 16, SpaceX shares have plunged roughly 50% to $113.37 (its after-hours closing price on July 24).
Details
Statistically, the average year-one max drawdown in technology-driven IPOs over the last 14 years is 55%, according to data from Truist Financial. Thus far, SpaceX is par for the course. However, history suggests that things may get considerably worse before they have any chance of turning around.
Source
Originally published at www.fool.com.