Investors who bought SpaceX (SPCX) on the day of its IPO paid $150/share or more. The bad news is that buyers at the IPO price of $135 might have paper losses, too. SPCX stock traded at around $134 on Tuesday before ending the day at $135.27.
Investors holding the stock should resist watching shares as it demonstrates a narrow fluctuation near the IPO level. Next month, the insider lockup expires. Executives and workers might sell aggressively, which would pressure the stock to fall by more. Cerbras (CBRS), Figma (FIG) and CoreWeave (CRWV) are examples of stocks with weak post-IPO performance. CBRS stock, for example, peaked at over $386 before closing recently at $184.
After markets closed on Wednesday, AST SpaceMobile (ASTS) announced a convertible notes offering worth $13 billion. The senior notes mature in 2034. Holders may convert the notes into cash, Class A shares, or a combination of both. The 13% dilution nearly matched the after-hours drop of 12.52%, where ASTS stock traded at $58.01.
Planet Labs (PL), Rocket Lab (RKLB), and ASTS performed poorly after SpaceX’s IPO. Markets are pricing in the increased competition they will face from SpaceX. Even the telecom sector is fearful of SpaceX’s entry into landline networks. Shares of Verizon (VZ), Charter (CHTR), and T-Mobile (TMUS) are down this year.
Related Stories
