The SpaceX IPO Is Coming: History Says the Stock Will Do This When It Starts Trading
The Motley Fool • • business
Key Points:
- SpaceX has confidentially filed IPO paperwork and plans to start its IPO roadshow on June 8, aiming for a $1.75 trillion valuation, which would make it the largest U.S. IPO ever.
- Historical data shows that large IPOs tend to experience significant share price declines after their debut, with a median drop of 10% in three months and 31% in the first year.
- Most of the largest IPO stocks have underperformed the S&P 500 since their listings, suggesting that investors might initially be better off investing in an S&P 500 index fund rather than buying SpaceX shares immediately.
- While SpaceX shares may underperform initially, there could be future buying opportunities, as seen with companies like Uber, which eventually outperformed the market after a period of underperformance.
