Elon Musk’s SpaceX has confidentially filed for an initial public offering (IPO) with the SEC, aiming for a staggering $1.75 trillion valuation, which would set a record for the largest IPO in U.S. history. The company plans to begin its IPO roadshow on June 8, with shares expected to start trading by late June or early July.
While the excitement surrounding SpaceX’s debut is palpable, historical data suggests caution for potential investors. IPOs, particularly those with large market valuations, often experience significant declines after their initial trading days. Between 1980 and 2025, large IPOs have shown a median drop of 31% within their first year, with many underperforming the S&P 500.
For market professionals, the key takeaway is to consider waiting for a more opportune entry point into SpaceX shares. Historical trends indicate that patience may yield better long-term returns, as evidenced by other high-profile IPOs like Uber, which have eventually outperformed the index after initial struggles.
Source: fool.com