SpaceX stock falls below its IPO price despite a wall of bullish analyst price targets
SpaceX shares have fallen significantly below their IPO price despite initial optimism from Wall Street analysts. The decline has left investors facing losses and raised questions about the timing and valuation of the company's public debut.
Why it matters
The performance of such a high-profile IPO serves as a bellwether for investor sentiment toward the broader space and technology sectors.
SpaceX stock just handed Wall Street a lesson in bad timing.
Days after analysts at more than a dozen banks rolled out price targets that were almost uniformly bullish, the shares tumbled below their $135 IPO price for the first time, then kept falling toward $125. The reversal is jarring for a company whose Nasdaq debut in June was the largest in U.S. history : shares that peaked near $211 within three days of trading have now shed nearly 60% of their value, leaving even early allocation winners facing a loss if they sell today.
The big retreat blindsided the top Wall Street backers. Early-ish in July, analysts at eighteen of the banks that handled probably the most celebrated IPO of all time issued their outlooks for SpaceX. The research notes pretty much flooded all at once, as is typical 25 days after a new issue starts trading.
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