SpaceX stock drops to $137.68 after $225 debut rally
SpaceX stock just had a roller coaster start. After quickly rallying to around $225 after its debut and briefly making Elon Musk a trillionaire, shares have now dropped 5.3% to $137.68, barely above the IPO price of $135.
The hype faded fast as investors cashed out and tech stocks got a reality check, wiping out all those early gains.
SpaceX low float fuels volatility
Even though SpaceX joined the Nasdaq-100 last week (thanks to a rule change), the stock is still bouncing around a lot.
Experts say that's because there aren't many shares available for trading and the company's high valuation makes things extra jumpy.
Viram Shah from Vested Finance suggested that investors should assess portfolio allocation, as newly listed companies can experience price swings before finding stable valuation.
On the bright side, SpaceX's core business is solid: Starlink keeps growing and its rocket launches are breaking records.