Space Exploration Technologies Corp. Class A Common StockSPCX
Mentioned
Impact on stocks 1
Space Economy
Space Exploration Technologies Corp. Class A Common StockSpace Exploration Technologies Corp. Class A Common StockSpace Exploration Technologies, trading as SpaceX under ticker SPCX, saw its stock jump 19% on its first day of trading. The company debuted with a massive valuation of $1.77 trillion at its IPO price and raised about $85.7 billion in its offering after underwriters exercised their option to buy more shares. The stock now trades for over 140 times sales, a level that historically leads to poor long-term returns. Total returns for IPOs since 1980 over their first three years of trading trail the market by 20.5 percentage points, and the average IPO with a price-to-sales ratio above 40 produced three-year returns of just 3.1% from its first closing price. Additionally, SpaceX issued only about 4% of the company to the public, a low float that often creates selling pressure as lockups expire.