SpaceX Stock Slips Below IPO Debut Price After Nasdaq-100 Entry
SpaceX shares closed under $148 in a two-day slide following its Nasdaq-100 inclusion, despite an $85.7B record-breaking IPO raise.
SpaceX had one of the biggest IPO moments in market history, pulling in $85.7 billion after underwriters exercised the greenshoe overallotment option — and the stock still can't hold its debut price. Shares closed below $148 after two straight sessions of selling pressure, a jarring turn for a company that just landed a spot in the Nasdaq-100 index.
This is a classic "buy the rumor, sell the news" setup. Index inclusion sounds like a milestone, but it often triggers mechanical selling once index funds finish rebalancing. Traders who front-ran the Nasdaq-100 addition are now cashing out, and that supply is hitting hard.
Read more Michael Burry Bets on DraftKings and Flutter Amid Prediction Market Fears →
The greenshoe, or overallotment option, is worth paying attention to here. Underwriters exercised it in full, meaning they sold more shares than originally planned to help stabilize the price if demand faltered post-debut. The fact that the stock is still sliding below the debut price suggests that stabilization mechanism is either exhausted or wasn't enough to absorb the post-inclusion wave of profit-taking.
For retail traders, the key question is whether this dip is a shakeout or the start of a real downtrend. A close this far below the IPO price this quickly usually signals weak hands are still in control. Watch for volume to dry up and price to find a floor before treating this as a buying opportunity. Chasing a falling knife on a freshly public mega-cap is a dangerous game.
Continue reading at US Top News and Analysis
