SpaceX, which celebrated its IPO at the Nasdaq on June 12th, 2026, has seen a dramatic reversal in its share price just days after its highly anticipated public debut. After initially soaring from its $135 IPO price to an intraday high above $225 on Tuesday, the stock has since fallen 20%, closing Thursday at just under $180 per share [1]. The five-day volume-weighted average price (VWAP) is $179, indicating that the average investor who bought shares in the open market post-IPO is now approximately breaking even [1].
The sharp pullback has erased nearly all of the gains accumulated after the debut, bringing the stock back to levels seen on its second day of trading [1]. This decline has particularly impacted thousands of retail investors who accessed the IPO through platforms such as Robinhood, Fidelity, and SoFi. While many of these investors received only a small allocation—sometimes just one or a handful of shares—those who bought at the $135 offering price are still holding gains despite the recent drop [1].
The reversal in SpaceX's share price has prompted investors to reassess whether the company's rapid post-IPO advance was justified by its fundamentals. At its peak, SpaceX's market value briefly approached $3 trillion, but the subsequent decline has narrowed profits and shifted market sentiment [1].
The market reaction underscores the volatility and uncertainty that can follow even the most anticipated IPOs, as initial enthusiasm gives way to more cautious evaluation of long-term prospects [1].
CONCLUSION
SpaceX's post-IPO rally has quickly faded, with shares now trading near the average price paid by most post-IPO buyers. While early retail investors who received IPO allocations remain in profit, the broader market is reassessing the company's valuation after a sharp 20% pullback. The event highlights the risks and rapid sentiment shifts associated with high-profile public offerings.