SpaceX (NASDAQ:SPCX) shares continue their post-IPO retreat after topping $225 per share last week.
At this moment in early trading, SpaceX is trading around $149, down several points after shares closed yesterday down over 16%. This represents an exceptional decline in value but is not atypical when a hot private firm goes public in an offering that garners significant retail interest.
Robinhood (NASDAQ:HOOD) shared on CNBC today that 850,000 customers purchased at least one share on its platform. Robinhood said that every account holder who requested shares received at least one, with some gaining access to more.
Part of the reason the shares have been so volatile is the down market, with the tech sector also in broad retreat.
At the same time, the float of publicly traded shares is constrained enough that demand can quickly cause a shift in price direction.
The fact that significant lock-ups are in place for larger shareholders means that, over time, more volatility can be expected.
Mitigating factors include the expectation that large funds will buy shares and the inevitability that SpaceX will be added to various indices.
Still, shares are trading higher than the IPO price of $135. Many analysts expect SpaceX shares to move higher, some dramatically so, with Truist Securities setting a $261 target. On the other side, the pessimists Morningstar and CFRA have sell recommendations with price targets of $63 and $115, respectively.
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