SpaceX Stock Has Gone Nowhere Since Its First Day of Trading
SpaceX stock has remained relatively flat since its IPO, despite significant revenue growth. The stagnation is attributed to a complex schedule of insider share unlocks, high spending, and a high initial valuation.
Why it matters
Understanding the mechanics of IPO share lockups and valuation is critical for investors evaluating high-growth tech and aerospace companies.
SpaceX ( SPCX -1.36% ) closed at $160.95 on June 12, its first day as a public company, capping the largest initial public offering (IPO) in history. On Friday, three months later, the stock closed at $152.71 -- about 5% below where it started.
Flat doesn't mean calm, though. Shares closed as high as $211.39 in their third session, took a beating into early August (bottoming near $108), and have spent most of September climbing back.
The business, meanwhile, has been anything but stuck. Second-quarter revenue rose 92% year over year.
Why has one of the world's most valuable companies gone nowhere as a stock? I'd point to three things: a calendar of insider share unlocks, a first earnings report that revealed staggering spending, and a valuation that assumed years of success from the start.
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