Should You Buy the SpaceX IPO? History Says the Stock Will Make a Big Move in the First Year.
Written by Trevor Jennewine for The Motley Fool -> SpaceX will be the largest IPO on record. The company priced its stock at $135 per share, which brings its initial market capitalization to $1.77 trillion. SpaceX's vertical integration is unique. No other company brings togeth
SpaceX will be the largest IPO on record. The company priced its stock at $135 per share, which brings its initial market capitalization to $1.77 trillion.
SpaceX's vertical integration is unique. No other company brings together the launch, connectivity, and compute technologies needed for orbital AI data centers.
Historically, large IPO stocks have often declined during their first year on the market, and their long-term returns have frequently lagged the S&P 500.
The S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) have declined modestly this week as Wall Street prepares for the SpaceX (NASDAQ: SPCX) IPO on Friday, June 12. The event will be historic for multiple reasons: The company will raise a record $75 billion at an unprecedented valuation of $1.77 trillion, making it the largest IPO of all time.
Investment banks involved in the deal report strong demand for SpaceX stock, priced at $135 per share and trading under the ticker SPCX. In fact, the IPO is four times oversubscribed, meaning demand exceeds the number of shares available by a factor of four, according to Reuters.
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Should you buy the SpaceX IPO? In the last decade, the average IPO stock gained 25% on the first trading day , but large IPOs have historically dropped sharply during the first year. Here's what you should know.
SpaceX (short for Space Exploration Technologies) breaks its business into three operating segments: space, connectivity, and artificial intelligence (AI).

