SpaceX Stock Reverses: The Average IPO Buyer Now Underwater After Sharp Two-Day Sell-Off

Last updated: June 19, 2026 7:43 am

1 month ago

0 Min Read

SpaceX shares have experienced a significant pullback, with the average post-IPO buyer now close to being underwater. After soaring to over $225 following its $135 IPO, the stock has fallen 20%, erasing most of the initial gains.

This rapid reversal has impacted retail investors who secured shares at the IPO price, narrowing their profits considerably and prompting a reassessment of the company’s valuation.

SpaceX Stock Reverses: The Average IPO Buyer Now Underwater After Sharp Two-Day Sell-Off

By Chris Hayes and Deena Zaidi

SpaceX celebrates its IPO at the Nasdaq on June 12th, 2026. (Image: Adam Jeffery | CNBC)

Investors who snapped up shares of SpaceX during its highly anticipated initial public offering have seen nearly all their gains evaporate following a steep two-day slide. The average post-IPO buyer is now effectively treading water, close to being underwater as the stock experiences a significant pullback.

On Thursday, SpaceX shares dropped by 3.6%, closing just shy of $184.98. This decline brought the stock's five-day volume-weighted average price (VWAP) to $181.71. VWAP is a critical metric used by traders to assess the average price of a security throughout the trading day, weighted by volume, offering insights into investor positioning.

The current trading price suggests that the typical investor who bought into SpaceX immediately after its IPO is now roughly breaking even. This marks a dramatic shift from the stock's initial surge.

SpaceX's stock initially soared from its $135 IPO price, reaching an intraday high exceeding $225 on Tuesday. This rally was fueled by intense investor demand for one of the most talked-about public offerings in years. However, the momentum proved short-lived, with the stock retreating 20% from its peak. It has now returned to levels seen on Monday, its second day of trading.

This sharp reversal has significantly narrowed the profits for a multitude of retail investors who gained access to the IPO through popular brokerage platforms such as Robinhood, Fidelity, and SoFi. While many individual investors received only a limited number of shares—sometimes as few as one or a handful—these allocations were secured at the $135 offering price. Consequently, even with the recent pullback, these investors still hold gains on their initial investment.

The swift reversal highlights the volatility in market sentiment following the company's blockbuster debut. After briefly propelling SpaceX's market valuation towards an astonishing $3 trillion, investors are now reassessing whether the stock's rapid ascent is sustainable and justifiable based on the company's fundamental performance and outlook.