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SpaceX shares drop 48% from IPO amid extreme volatility
The stock swung sharply, rising as much as 16% on a day traders expected to punish sellers after a new block of shares hit the market.
SpaceX shares have fallen about 48% from their $135 IPO price, leaving the company at an estimated 85 times price-to-sales despite being among the most expensive large-cap listings in market history, according to Yahoo Finance.
Yahoo Finance also points to unusually high volatility, including a surprise 16% jump on a day that was expected to pressure sellers after another block of shares began trading publicly, a move that the outlet said underscores the risk of chasing short-term dips.
The article notes that buyers who waited for a better entry point could be looking at prices closer to the IPO range, with the stock spending much of its first day around the $160 level, while still warning that a lower purchase price does not automatically mean the stock is discounted to intrinsic value.
It further argues against bottom-fishing based on the difficulty of predicting further downside, and it highlights that even without a short position, the latest sell-the-news style move and potential short-squeeze dynamics have left many investors reassessing the timing of entries.