SpaceX Has Climbed 15% From Its IPO Price. Here’s Where History Says It Will Be After 1 Year.
Space Exploration Technologies (NASDAQ:SPCX) completed its initial public offering about four months ago, and so far, the stock has offered investors ups and downs — after rising right out of the gate and climbing 50% to a peak in just a few days, the stock today trades only about 15% above its IPO price of $135. And at certain moments, it fell below that level.
SpaceX has been a closely watched player for a number of reasons. First, its IPO was the biggest ever, raising more than $85 billion after the exercise of an overallotment option, and the company entered the market with a trillion-dollar valuation. That’s exceptional, since it took other trillion-dollar companies, from Apple to Nvidia, years on the market to reach that level. The company also specializes in technologies seen as game-changing, suggesting the revenue opportunity ahead could be big. Finally, the presence of chief Elon Musk, known for his focus on innovation, has drawn investor attention.
Still, SpaceX faces a fair share of risk, and that could weigh on the minds of some shareholders and potential investors. Where will the stock be after one year on the market? History offers us a clear idea.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.