SpaceX Investors Weigh 10% IPO Slump Risk as Stock Swings From $192.50 High
Updated
Updated · Yahoo Finance · Aug 16
SpaceX Investors Weigh 10% IPO Slump Risk as Stock Swings From $192.50 High
3 articles · Updated · Yahoo Finance · Aug 16
Summary
$192.50 marked SpaceX's post-IPO peak after the stock opened at $150, but shares later fell below their debut price before recently recovering above the $135 IPO level.
AllianceBernstein's 10-year review of IPOs raising at least $50 million found a median 10% decline six months after lockups expire, with 1 in 10 dropping at least 62%.
That volatility is driving advice to set profit-taking and rebalancing plans if shares rise, and to use stop-loss orders, tax-loss selling or options hedges if the stock drops.
Lockup expirations after SpaceX's first quarterly earnings report could add selling pressure, while a filing note about possible additional share issuance has raised dilution concerns.
The broader takeaway for holders is to size SpaceX exposure to their risk tolerance and tax situation so a sharp swing does not derail long-term portfolio goals.