SpaceX Stock Is Down 34% From Its High. History Suggests a $10,000 Investment Will Be Worth This Much by Mid-2027.
The stock peaked shortly after its IPO, but shares have started to slide in recent weeks.
Overview
By now, you probably don't need an elaborate explanation about Space Exploration Technologies' (NASDAQ: SPCX) initial public offering (IPO). The company's June debut was the largest IPO in history, raising roughly $85 billion at a valuation of around $2.1 trillion. For a brief moment, SpaceX was actually more valuable than Amazon. This part of the story is old news for those who have been following the stock, though.
What's more interesting is how SpaceX has traded since its IPO pop. Just days after the IPO, shares reached an intraday high of roughly $226. However, after the company's initial euphoric ascent, concerns about SpaceX's aggressive capital expenditure plans and the potential for post-IPO lockup expirations to pressure the stock fueled a flurry of selling prior to its first earnings report as a public company. After bottoming out at just under $105, shares have started to rebound again.
Details
Still, SpaceX now trades roughly 34% below its post-IPO peak, and in the vicinity of the $150 per share price where it opened on its first day of trading. Investors may be wondering whether this is an opportunity to buy the dip or the precursor to yet another drawdown. While I don't have a crystal ball, I do have a useful data set that shows a consistent pattern among mega-hyped IPOs. Spoiler alert: The direction of SpaceX stock is anyone's guess. Investors who want to add it to their portfolios should buckle up and prepare for a bumpy ride.
Source
Originally published at www.fool.com.