Beware SpaceX buyers: Major IPOs are typically a rough ride in the first year SpaceX’s upcoming IPO is expected to be the largest on record, but historical data from Truist Wealth indicates that major public debuts tend to experience significant volatility and drawdowns in their first year. Many highly anticipated IPOs, including Meta Platforms and Alibaba, faced declines after their debut. SpaceX’s planned IPO size and high retail participation are likely to amplify this expected volatility.

• SpaceX’s IPO is anticipated to be the largest on record.
• Historical data shows major IPOs typically experience declines and severe drawdowns in their first year.
• Median stock performance for major IPOs is a 9% drop in the first 12 months.
• The majority of companies see significant stock price plunges within their first year.
• SpaceX is expected to go public as a megacap company with high retail investor interest.
• Retail interest could drive significant volatility around the SpaceX IPO.
• Past highly anticipated IPOs like Meta Platforms and Alibaba had rough starts.
• SpaceX plans to make up to 30% of its shares available to individual investors.