Elon Musk’s SpaceX was listed on the Nasdaq on June 12 under the ticker SPCX, with an offering price of $135. The stock closed its first day at $160.95, up 19% from the offering price. Based on the closing price, its market value was about $2.1 trillion, and it even broke through the $2 trillion mark intraday at one point. However, other space stocks collectively bled due to the “siphon effect,” with Virgin Galactic plunging 31% in a single day.
(Background: SpaceX was oversubscribed by 4 times, with subscription reaching $250 billion! Analysts: technology and cryptocurrencies can withstand the “IPO tax” plunge)
(Additional background: The craziest IPO in U.S. stock history! SpaceX’s listing attracted retail orders worth over $70 billion, nearly filling the world’s total fundraising amount)

Key highlights

SpaceX (SPCX) listed on NASDAQ on 6/12; offering price $135; first-day close $160.95, up about 19%
Market value is about $2.1 trillion based on the closing price; it briefly surpassed the $2 trillion mark intraday; IPO fundraising of $75 billion is the largest in U.S. stock history
Under the siphon effect, other space stocks suffered heavy losses: Virgin Galactic -31%, Rocket Lab and EchoStar about -10%

SpaceX rewrote the record on its first day of trading. SpaceX, led by Elon Musk, listed on the Nasdaq on June 12 under the ticker SPCX, with an offering price of $135. It closed its first day at $160.95, up 19% from the offering price. Intraday, it briefly surged to $176.52, with a low of $149.34.

Based on the closing price, SpaceX’s current market value is about $2.1 trillion, and it even briefly surpassed the $2 trillion mark intraday. This IPO raised $75 billion—the largest scale in U.S. stock history—subscription was about 4 times, and orders at one point exceeded $150 billion.

Within a single day, SpaceX became the most valuable space company in the entire market.

Other space stocks got “drained”

On the other hand, tragedy struck the same sector. Virgin Galactic (SPCE) crashed 31%, giving back all of the 23% gain from the previous trading day; Redwire (RDW), Satellogic (SATL), and AST SpaceMobile (ASTS) also fell by more than 11%; EchoStar (SATS) and Rocket Lab (RKLB) dropped by about 10% as well; and smaller space stocks such as Intuitive Machines (LUNR) and Firefly (FLY) had already been on a multi-day losing streak earlier.

The reason is not complicated—it’s the “siphon effect.” Many investors and funds who want to buy SpaceX need to cash out their existing space stocks first. What the leading company’s listing siphons away is not just capital, but also the attention of the whole sector. Whether these siphoned space stocks can “pull the money back” depends on whether the market still remembers them after the hype around SpaceX fades.

Frequently Asked Questions

What were SpaceX’s closing price and market value on its first day?

SpaceX began trading on June 12 under the ticker SPCX. The offering price was $135, and it closed the first day at $160.95, up about 19%, with a intraday high of $176.52. Based on the closing price, the market value was about $2.1 trillion, and it briefly surpassed the $2 trillion mark intraday.

Why did other space stocks fall sharply on the day SpaceX went public?

The main reason is the “siphon effect.” To buy into SpaceX, investors first sold off other space stocks they held to cash out, causing funds and attention to concentrate on this historic, largest-ever IPO. Virgin Galactic dropped 31% that day, and Rocket Lab, EchoStar, and others also fell by about 10%.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.