SpaceX (NASDAQ:SPCX) went public on June 12 and, amid investor anticipation, debuted above its IPO price, surging 19% on day one. About a month later, the stock fell about 30% from its debut price. SpaceX stock has rebounded significantly over the last two months, rewarding patient investors.
SpaceX Stock Rallies
Fueled by multiple catalysts and continued strong investor demand, SpaceX stock has rallied over the last two months, helping CEO Elon Musk once again become a trillionaire.
The stock's up-and-down price since its June 12 debut could be a good lesson in timing and patience for investors, particularly around a highly anticipated IPO.
SpaceX stock was priced at $135 for its IPO and opened trading at $150. On the first day of trading, shares were up 19%.
By the end of July, the stock price had crashed over 30% and hit a 52-week low of $104.83.
Recent launches, Musk's optimism, and a new spectrum deal for the Starlink unit have fueled optimism in the stock price once again.
SpaceX shares closed Friday at $162.57, up 22% from their Aug. 11 close.
For comparison, the SPDR S&P 500 ETF Trust (NYSE:SPY), which tracks the S&P 500, is up only 1% over the same period: Aug. 11 to Oct. 9.
That's a 22-to-1 outperformance for SpaceX stock over the last two months.
Patience Pays Off
Investors who bought in on the SpaceX IPO are up from the initial IPO price. Those who bought in on the first day of trading may be up only slightly now, at the closing price of the first day, if they chose to wait and buy shares on the first day of trading.
Others, like some members of Congress, bought SpaceX stock in the days after the market debut, when shares hit their highest levels. Those investors are holding a loss today.
The smartest investors may have been the traders who sat out the IPO entirely, waited for the dust to settle, and then bought SpaceX stock two months after the offering.
Those traders avoided periods of high volatility and are now up over 20% in two months.
With SpaceX recently securing spectrum needed for a full mobile launch and quarterly earnings expected next month, upcoming catalysts could keep the stock in the spotlight and reward the patient investors even more.