Key facts
- SpaceX shares have fallen 32% from their peak since the IPO.
- The stock is still up 13% from its IPO price of $135.
- Retail traders remain largely optimistic about SpaceX's long-term potential.
- Some investors who profited from early trading plan to buy more shares on dips.
- Elon Musk's valuation has been impacted by the stock's volatility.
SpaceX shares have experienced significant volatility since their initial public offering, falling 32% from their peak, though remaining up 13% from the IPO price of $135. This decline has impacted Elon Musk's personal valuation. Despite the market fluctuations, many retail investors who participated in the IPO remain optimistic about the long-term prospects of the rocket company.
Some investors, like Walid Diab from the UAE, bought shares at a high valuation and later sold a portion for a small profit, while holding the remainder for the long term. Diab views SpaceX as a logistics company with little competition and believes its stock can only go up. Prashant Mishra, a UK-based investor, and his wife also participated in the IPO, investing £1,000 each, and sold for a profit, citing Musk's persona as a key factor in their decision. They plan to reinvest in the future, anticipating a 15%-25% return over the years.
Other investors, such as Jonathan Walters, who has been trading for over 15 years, are adopting a wait-and-see approach. Walters bought into the stock on the IPO day and exited his position a few days later, expressing bullishness for the long term but waiting for a significant drop in valuation or for the company to "miraculously start making a ton of money."