SpaceX's $25 Billion Bond Offering Got Investment-Grade Ratings From All Three Agencies -- And the Stock Still Fell 16% Anyway. Here's Why
SpaceX started with a bang, but now the stock is fizzling; investors may be questioning the scale of the AI opportunity.
Overview
Space Exploration Corporation's (NASDAQ: SPCX) highly anticipated initial public offering raised $75 billion from investors and a total of $85.7 billion when you include the overallotment given to the investment bankers. That's a huge sum of money that the company plans to use to build its space-based operations and to support its aspirations in artificial intelligence. But investors aren't as excited about SpaceX as they once were.
When SpaceX held its IPO, there was a huge amount of excitement, and the stock rose sharply for a few days. But the stock has quickly fallen back toward the IPO price. In fairness to SpaceX, that's not an unusual outcome for an IPO. However, there was so much excitement around SpaceX that the price drop warrants examination.
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Originally published at www.fool.com.