SpaceX's initial public offering on the Nasdaq saw its shares jump 19% on Friday, closing at approximately $161, up from an IPO price of $135. This debut lifted the company's market value above $2 trillion. The stock continued to gain, rising another 6% on Monday, bringing its total increase to around 20% by that point [cnbc.com, democraticvoiceusa.com].
Demand for SpaceX shares was exceptionally high among retail investors, with platforms like SoFi, Charles Schwab, Fidelity, Robinhood, and ETrade reporting unprecedented interest. Despite this, many retail investors received only a fraction of their requested shares. For instance, Ross Cameron, founder of Warrior Trading, requested 4,250 shares but received 147, while Justin Sacco received 11 shares out of 75 requested. Some investors even reported receiving just a single share [cnbc.com, democraticvoiceusa.com].
Retail participation in the IPO was notably high, with individual investors securing 20% of the offering, compared to 10% for hedge funds and 70% for institutional investors. Many of these retail investors faced restrictions on "flipping" shares (selling within 15-30 days of the IPO) imposed by brokerage platforms like Fidelity, Robinhood, E*TRADE, and SoFi. Penalties for flipping ranged from temporary bans from future IPOs to permanent account bans, a measure intended to stabilize the stock and differing significantly from the less restrictive conditions for larger funds [ae.marketscreener.com, cp24.com].
This resulted in a mixed reaction among retail investors; some opted to sell early to take profits, while others committed to holding for the long term, viewing SpaceX as a unique opportunity linked to Starlink and commercial space exploration. The mixed approaches highlight the challenge in valuing the company, particularly given its $2 trillion valuation [cnbc.com, democraticvoiceusa.com].
