SpaceX stock dropped 5-6% on June 18, ending a three-day rally that had lifted shares nearly 50% above their initial public offering price of $135.
The aerospace company’s shares closed at $191.82 on Wednesday, down 4.95% from the previous day, according to RTTNews. The pullback marked the first loss since the stock’s market debut on June 12, when shares opened at $150 and closed at $160.95, a gain of 19% from the IPO price.
SpaceX’s IPO, which priced at $135 per share on June 11, raised approximately $75 billion and became the largest initial public offering in history. With underwriters exercising their overallotment option, the total raised reached $85.7 billion, according to RTTNews. The stock trades under the ticker SPCX on the Nasdaq.
The momentum continued through the second day of trading on June 13, when shares surged to $192.46, extending the rally to 42% above the IPO price, according to the Los Angeles Times. On Tuesday, June 16, the stock climbed further to around $201-$202 per share, bringing total gains to nearly 50% from the IPO price, according to ABC News and Yahoo Finance.
The three-day rally reflected intense retail investor demand. SpaceX allocated more than 20% of its shares to retail investors, according to the New York Times, and that segment drove much of the buying pressure during the opening days of trading. By Tuesday’s close, the company’s market capitalization had exceeded $2.5 trillion, briefly surpassing Amazon and Microsoft to become the sixth most valuable company in the world.
The pullback on June 18 reflects a common pattern in heavily hyped IPOs. After initial euphoria and retail buying frenzy subsides, stocks often experience profit-taking as early investors lock in gains. The Motley Fool noted that the IPO frenzy was fading, with the stock finally taking a breather after successive days of appreciation. The stock remains up sharply from its IPO price despite the single-day decline.
Sources
- RTTNews — SpaceX stock price movements and IPO details
- Los Angeles Times — Second day of trading details and market capitalization
- ABC News — Stock price on Tuesday afternoon
- Yahoo Finance — Retail buying frenzy and three-day rally details
- The New York Times — Retail investor allocation and market capitalization milestones
- The Motley Fool — Analysis of IPO frenzy fading
