SpaceX went public last Friday in the largest initial public offering in history. For two days following the debut, Elon Musk’s rocket-and-satellite company was one of the five most valuable companies on Earth.
Investor bullishness showed signs of waning on Wednesday as shares sank 5%. By Thursday, the market began to reconsider, with shares falling as much as 7% to $178 and last trading down 6.5% at $178.50. This movement leaves the stock trading roughly in line with its volume-weighted average price of just under $180.
The recent dip proves that even the largest IPOs are not immune to the share-price volatility that tends to rock big companies after they go public. Volatility is likely to continue as investors weigh lofty expectations for future revenue growth. Meanwhile, Tesla Inc. stock is set to end the holiday-shortened week lower.