Should You Buy the $1.75 Trillion SpaceX IPO? Here Is What History Says
Elon Musk's SpaceX is planning a potential $1.75 trillion IPO, sparking hype, but history suggests high-profile IPOs often struggle to sustain their initial surge. Past IPOs like Palantir, Snowflake, and Figma have seen significant drops after initial gains.
SpaceX is eyeing a potential $1.75 trillion IPO, which could be the largest in history. The company's valuation is nearing $2 trillion, sparking extreme hype among investors. However, history suggests that high-profile IPOs often struggle to sustain their initial surge. Companies like Palantir, Snowflake, and Figma have seen significant drops after initial gains. Palantir's stock plunged over 60% in 2022 before recovering. Snowflake's stock opened at $245 and closed near $254 on day one, but now hovers around $140. Figma's stock crashed within months of its IPO. The initial surge in IPOs often reflects underpricing and retail jitters rather than sound fundamentals. SpaceX's sky-high target valuation leaves little margin for execution slips in a capital-intensive industry.
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