Despite the optimistic claims ahead of the initial public offering (IPO) and the subsequent bullish forecasts, investing in SpaceX (NASDAQ: SPCX) stock as soon as it became available would not have been a lucrative move by press time on August 28.
Specifically, though SPCX enjoyed a strong recovery during the month that took the equity from its all-time low of $104.83 to $142.83 at press time, Elon Musk’s newer trillion-dollar company remains only slightly above the IPO price and below the day-one prices.
Indeed, since SpaceX stock was originally available at $135 – though high interest and low float ensured that filling orders at that price was difficult – a $10,000 investment at the time would have turned into a position worth $10,580 for a modest profit of $580.
SPCX shares, however, met the June 12 morning bell – their first day on the stock market – at $150, meaning that, even after the 36.25% rise from the all-time low, the $10,000 first-day bet would have lost $478 and diminished to $9,522.
Finally, only making the trade toward the end of SpaceX stock’s first day would have meant buying at $160.95. Considering the equity has retraced 11.26% from the price, the $10,000 position would have dropped to $8,874.18 for a $1,125.82 loss.
Looking ahead, however, there is substantial confidence among prominent figures in business and finance that a $10,000 investment in SpaceX made at the IPO would bring in excellent returns.
How profitable could investing $10,000 at SpaceX IPO become?
For example, Nvidia (NASDAQ: NVDA) CEO Jensen Huang came out even before SPCX went public to opine that being an early shareholder in the company would be akin to buying Meta (NASDAQ: META), Google (NASDAQ: GOOGL), or Amazon (NASDAQ: AMZN) as soon as the three went public.
Notably, it would appear that the semiconductor giant took its most senior executive’s advice to heart as the blue-chip chipmaker disclosed a $21 billion SpaceX stake in mid-August.
Elsewhere, in subsequent months, Wall Street also generally came out as bullish, with the Street high price target for 2027 being as high as $800, thus effectively estimating a $10,000 IPO purchase would turn into a $59,259 position by June 2027.
Though less optimistic, the most recent major revision – the one issued by JPMorgan (NYSE: JPM) – would still lead to the shares reaching $240 and the investment growing to $17,778.
Still, it is worth stating that the Street high price target might be overly optimistic, as reaching it would mean that SpaceX’s market capitalization reached $10.49 trillion.
Similarly, while the revenue prediction as made by Elon Musk himself – $1 trillion by 2030 or 2031, and more than $3 trillion by 2033 – would certainly justify the exceptionally high price target, them getting fulfilled would require the firm’s sales to rise up to 45x in five years from the estimated 2026 total of between $22 billion and $30 billion.
Featured image via Shutterstock
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