SpaceX stock jumps 19% from $135 to $161 in record IPO debut, largest in market history

Discuss:

• Is SPCX already overvalued after day one?
• Was this mostly retail FOMO or real demand?
• Where does it go from here in the next few weeks?

Source: https://finance.yahoo.com/markets/stocks/articles/spacex-set-begin-trading-raising-132927221.html

Article snippet:

SpaceX's (SPCX) stock opened at $150 on Friday — an 11% jump from its IPO price — and finished up nearly 20% for the day.

The rocket and satellite company priced its IPO Thursday night at $135 per share ahead of today's debut on the Nasdaq Composite (\^IXIC), trading under the ticker SPCX (SPCX).

"SpaceX going public is an important moment for the broader tech sector in our view as this AI Revolution and data takes this next step forward," Wedbush analyst Dan Ives wrote in a note to investors Friday morning.

SpaceX stock jumped over 30% after opening, but pared some of those gains to close at $160.95, up 19.2%.

Some on the Street believe the stock will be volatile for days to come.

"The stock is bound to be volatile," said Howard Chan, founder and CEO of Kurv Investment Management. "Maybe it's better to harvest volatility premium while the equity price settles down."

SpaceX offered 555.6 million shares to hit a record $75 billion raised. Underwriters are holding a "green shoe" — or the option to sell additional shares if demand outstrips the initial allotment — of approximately 83 million shares, worth around $11.2 billion.

"As of now, SpaceX is the sixth largest US company behind Amazon at $2.54 trillion and ahead of Broadcom (AVGO) at $1.81 trillion;" Bespoke Investment Group said in a research note. "Elon Musk's SPCX is already $700 billion larger than Tesla (TSLA), and it's more than twice the size of Berkshire Hathaway (BRK-B)."