SpaceX shares fell 6% on Thursday, closing just under $180, following a dramatic surge from the $135 IPO price to an intraday high of over $225 just days earlier. The stock's five-day volume-weighted average price (VWAP) stands at $179, indicating that the average investor who bought shares post-IPO is now nearly breaking even.
This sharp pullback has significantly impacted retail investors, many of whom accessed the IPO through platforms like Robinhood and Fidelity, often receiving only a small number of shares at the offering price.
Despite some investors still holding onto gains due to their lower purchase price, the overall sentiment has shifted, with many reassessing the stock's valuation after it briefly approached a market value of $3 trillion.
The recent decline highlights the volatility and risks associated with investing in newly public companies, particularly when initial enthusiasm may not align with long-term fundamentals