SpaceX SPCX shares fall 16% third straight day post-IPO rally fades now 14% above 135 offering price
SpaceX $SPCX fell 16% Monday, a third straight day of declines that erased most of its post-IPO rally. The stock listed June 12 at $135 and briefly jumped 67% to $225.64 before sliding. Shares now sit about 14% above the IPO price. Reporting from CNBC.
SpaceX shares ($SPCX) dropped 16% on Monday, the third consecutive trading day of declines and a sharp reversal of the rally that followed the company's record-setting public debut. According to CNBC, SpaceX listed on the Nasdaq on June 12 at $135 per share, raising roughly $75 billion in what ranks as the largest initial public offering on record. The stock then surged about 67% to an intraday high of $225.64 by June 16, briefly pushing its market value past several of the largest U.S. technology companies, before momentum faded. After the latest slide, shares sit only about 14% above the offering price, wiping out most of the gains for investors who bought in after the first day of trading. CNBC reports that analysts attribute the pullback to a stretched valuation, profit-taking, a thin public float, lock-up concerns, and the recent start of options trading, which gave short sellers their first practical way to bet against the stock. Investors who received shares at the $135 offering price remain in profit.