Historical data shows most mega-IPOs underperform the S&P 500 by a median of 127 percentage points over time.
SpaceX, which debuted last month as the largest IPO in history by market cap, has fallen nearly 21% from its June 16 peak. The decline contrasts with initial investor optimism following its record-breaking public offering.
Data from FactSet Research reveals that eight of the top 10 largest U.S. IPOs have underperformed the S&P 500 since going public, trailing the index by a median of 127 percentage points. Early performance has not been a reliable indicator, as Meta Platforms rose just 1% on its first day but later outperformed, while Coinbase surged 31% initially but has since lagged the S&P 500 by 136 percentage points.
The trend suggests that even high-profile IPOs may struggle to match broader market returns over time.