SpaceX shares return to IPO price after initial surge
The spaceflight company’s $75 billion listing saw shares briefly hit $225.64 before falling back to the $135 offering price, highlighting the volatility of newly public equities amid heavy capital expenditure.
SpaceX shares have returned to their initial public offering price of $135, erasing early gains for investors who bought at the debut. The company raised $75 billion in the largest IPO in history, with a retail allocation cut to the low 20% range. Although the stock briefly surged to $225.64, it has returned to breakeven levels by mid-July 2026. The company reported $18.7 billion in revenue for 2025 but posted a net loss of $4.9 billion as it invested heavily in Starlink and artificial intelligence.
An analysis of a hypothetical $2,000 investment at the $135 IPO price shows that, assuming fractional shares were available, an investor would have purchased approximately 14.8 shares. At the stock’s peak of $225.64, this holding would have been worth roughly $3,340, representing a paper gain of nearly 67%. As of mid-July 2026, with the share price at $135.27, the same investment is worth approximately $2,002, resulting in a net gain of just $2 (a 0.1% return).
The article highlights that retail investors submitted more than $100 billion in orders ahead of the debut, despite the final allocation being reduced from an initial target of up to 30%. A typical IPO reserves only 5% to 10% of shares for retail investors; SpaceX’s initial target of 30% was more than triple the norm, though institutional demand proved stronger than expected.
SpaceX entered the public markets valued at close to $1.77 trillion at the offering price. The company’s valuation is backed by businesses including Starlink, commercial launch operations, and its AI division following the acquisition of xAI. Elon Musk’s track record of attracting retail investors through companies like Tesla contributed to the high demand for the IPO.
The IPO debut coincided with modest gains in US equity markets and a drop in oil prices, as noted in related market events. The round trip from a 67% paper gain to essentially breakeven illustrates why a stock's first few weeks of trading can be a poor guide regarding its value as a long-term investment. For long-term investors, underlying business trends and financial results are likely to matter more than initial market swings.
