SpaceX Investors Beware: IPOs Significantly Underperform the Market in Year 1
IPOs have a history of disappointing early investors.
SpaceX Investors Beware: IPOs Significantly Underperform the Market in Year 1
Overview
Investor enthusiasm about the SpaceX IPO is palpable.
Space Exploration Technologies (NASDAQ: SPCX) began trading on Friday (June 12) at $150 a share, 11% above its IPO price. As I write this, it's trading at $166 a share, a 23% premium over the IPO price.
Details
A price bump for a popular IPO is nothing new, especially for tech IPOs. An Edward Jones study of 27 technology IPOs found their average first-day price increase was just above 35%, reflecting initial investor enthusiasm for the new issues.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.
