SpaceX shares surged over 20% on debut, pushing its market cap above $2 trillion, the largest IPO in history.
SpaceX (NASDAQ: SPCX) began trading at $135 per share on June 12, achieving an initial market valuation of $1.8 trillion. The stock climbed more than 20% on its first day, lifting its market cap above $2 trillion and setting a record for the largest IPO ever.
Historically, large IPOs have underperformed in their first year. Data from the 15 largest U.S. IPOs since 2006 shows an average decline of 50% at some point during the first year, with shares ending 33% below their IPO price on average.
If SpaceX follows this trend, a $10,000 investment could shrink to less than $5,300 within a year, with shares potentially falling to $67.50 from the current $171.