An 18% decline in SpaceX (SPCX) stock over the past two days has put most earlier investors in the company underwater.
The average investor who bought SpaceX shares on the open market after the commercial space company’s June 12 initial public offering (IPO) have now seen their gains evaporate.
The stock had been given a fixed IPO price of $135 U.S. per share. It hit the open market on June 12 at $150 U.S., and, over the next few days, climbed as high as $225 U.S. per share.
However, in recent trading sessions, SPCX stock has pulled back and ended trading on June 17 at $185 U.S. for a sudden 18% pullback.
Market data and analyst estimates say that the swift decline means that the average post-IPO buyer of SpaceX stock is now sitting on a loss in their position, or, at best, break even.
At $185 U.S. per share, SpaceX stock is now trading where it was on its second day listed on the Nasdaq (NDAQ) exchange.
Some analysts are warning that SPCX stock may have further to fall given its lofty valuation of $2.43 trillion U.S.
Prior to its market debut, analysts at Morningstar (MORN) warned that the stock was likely worth $62 U.S. per share, less than half its $135 U.S. IPO price.
Several experts on Wall Street were critical of the SpaceX IPO, warning that the stock’s valuation and rapid rise were not justified by the unprofitable company’s fundamentals.
Related Stories
