SpaceX Surges 19.34% in Debut, Could Pull Back to $139 Within Three Months Based on IPO History

According to The Motley Fool, SpaceX surged 19.34% in its market debut on June 12, reaching a $2.1 trillion valuation and joining the trillion-dollar club alongside Apple and Microsoft. The company priced its IPO at $135 per share and closed at $161.11 on the first day, raising $75 billion in what marks the largest IPO on record.

However, historical analysis suggests caution. Research from University of Florida finance professor Jay Ritter shows that among the ten largest U.S. IPOs from 1999 to 2023, eight experienced stock price declines within three months of listing, with an average drop of 13%. Applying this historical trend to SpaceX, the stock could potentially fall to around $139 over the next three months, only slightly above its IPO price.