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SpaceX's IPO was the biggest in history, raising $75 billion at $135 a share.1The offering sparked much excitement, with retail investors keen on buying into one of the world's most closely watched companies.
If you had invested $2,000 at the $135 IPO price, here's how much your investment would be worth today, and why the company's long-term prospects may matter far more than its first few weeks as a public stock.
SpaceX's IPO was remarkable not just because of its size, but because it gave individual investors an unusually large opportunity to participate.
A typical IPO reserves just 5% to 10% of its shares for retail investors.2SpaceX initially targeted as much as 30% for retail buyers, more than triple the norm, though that allocation was ultimately cut to the low 20% range before the deal closed, as institutional demand proved even stronger than expected.3Even at the reduced share, retail investors submitted more than $100 billion in orders ahead of the debut.
The excitement reflected more than just the numbers.
SpaceX entered the public markets valued at close to $1.77 trillion at the offering price, backed by businesses including Starlink, its commercial launch operations and its AI division following the xAI acquisition.
Elon Musk's track record of attracting retail investors through companies like Tesla also fueled investor interest.
Afinancial advisorcould help you look past market excitement when evaluating investments like SpaceX for your portfolio.
An investor who put $2,000 into the SpaceX IPO at the $135 offering price would have purchased about 14.8 shares ($2,000 ÷ $135), assuming fractional shares were available.
In the days after the IPO, the stock surged as high as $225.64, which would have pushed that same $2,000 to roughly $3,340 (14.8 shares × $225.64), a paper gain of nearly 67%.4 That rally didn't hold.
By mid-July, about a month after the IPO, SpaceX shares had fallen back to around $135.27, close to where they started.5The same $2,000 investment is worth approximately $2,002 today (14.8 shares × $135.27), essentially unchanged from the original investment despite the dramatic swings along the way.
That round trip, from a 67% paper gain to essentially breakeven, is a clear illustration of why a stock's first few weeks of trading can be a poor guide regarding its value as a long-term investment.
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